In early May, Indonesian President Joko Widodo met with Tesla CEO Elon Musk in Texas. U.S. electric car maker Tesla has apparently agreed to invest in battery and electric vehicle manufacturing in Indonesia, Investment Minister Bahlil Lahadalia said on May 18, without giving details. However, he hinted that the project could begin as early as this year, according to BenarNews, an online affiliate of US-sponsored news service Radio Free Asia. Jakarta has been trying to attract Tesla for several years as it tries to take advantage of being the world’s largest nickel producer,…
U.S. electric car maker Tesla has apparently agreed to invest in battery and electric vehicle manufacturing in Indonesia, Investment Minister Bahlil Lahadalia said on May 18, without giving details.
However, he hinted that the project could start as early as this yearBernal Newsan online affiliate of the U.S.-sponsored news service According to Radio Free Asia.
Jakarta has trying to woo Tesla has been seeking for several years to take advantage of being the world’s largest producer of nickel, a key element in electric vehicle batteries. Jakarta has also set a target that by 2025, 20% of cars made in Indonesia will be electric vehicles.
haven’t signed a contract
Lahadaria said Tesla agreed to build a battery and electric vehicle factory in an industrial park in Central Java.
“God forbid Tesla will enter Indonesia this year,” he said during a panel discussion in Jakarta.
“But I can’t announce the month yet. Let’s wait because we haven’t signed the deal. How much investment is still under wraps, still waiting. But it’s good stuff, big stuff,” he added.
Elon Musk to visit Indonesia in November
Tesla founder and CEO Elon Musk plans to visit Indonesia in November, the same month the Southeast Asian country hosts the 2022 G20 summit in Bali, according to a statement from Indonesian President Joko Widodo’s office. Announcements about potential factories may be made at that time.
Meanwhile, some analysts welcomed the news of Tesla’s entry, but questioned whether Musk was serious about investing in Indonesia, or whether the Southeast Asian country had what it took to host a “gigafactory.” Gigafactory is the industry’s name for Tesla’s manufacturing plant.
Critics don’t believe
Tesla currently has six factories on three continents around the world. The two companies just opened this year, with the Berlin Giga starting production in Germany in March and the Texas Giga about to deliver its first cars to customers. The other three are in the US, and the other is in Shanghai, China.
While direct supplies of nickel, cobalt and bauxite could benefit Tesla’s decision to operate a battery plant in Indonesia, critics say Indonesia still lacks the infrastructure needed to build Tesla’s “gigafactory,” including its reliance on electricity. And transport connections, and enough skilled manpower, not Tesla’s other locations.
