14-9-2023 (JAKARTA) The Indonesian government has approached Chinese automaker Geely Automotive Holdings to collaborate on the development of a domestically produced electric car by 2025 or 2026, according to a senior minister on Tuesday (Sep 12). The minister further stated that Geely has agreed to the proposal.
Geely has not yet responded to a request for comment from Reuters.
“I have offered Geely the opportunity to manufacture cars in Indonesia under an Indonesian brand and conduct research within Indonesia. They have agreed,” said Minister Luhut Pandjaitan, who oversees regulations on natural resources and investment, during a seminar.
The offer includes Indonesia providing nickel ore, a crucial component in electric vehicle (EV) batteries, while Indonesia takes the lead in conducting the research.
Indonesia has been actively seeking investments from EV manufacturers, leveraging its abundant reserves of nickel. However, its success in attracting such investments has been mixed thus far. Vietnamese EV company VinFast recently announced plans to invest approximately US$1.2 billion in Indonesia in the long term, including the establishment of a production plant slated to begin operations in 2026.
In the previous month, China’s Hozon New Energy Automobile and Japan’s Mitsubishi Motors made investment commitments for EV production in Southeast Asia’s largest economy.
However, efforts to secure investments from major EV manufacturers such as US-based Tesla and China’s BYD Group, have yet to materialize for Indonesian authorities.
