Tesla could begin manufacturing in Indonesia – report
Reports suggest electric-car maker Tesla could expand its operations to Indonesia as early as this year.
Tesla is reportedly in talks to build an electric vehicle manufacturing plant in Indonesia, with one of the country’s top government officials hinting at an investment of “huge value”.
According to Indonesian news outlet Benar News, Coordinating Minister for Maritime Affairs and Investment, Luhut Pandjaitan, confirmed negotiations were underway for the American electric carmaker to build a production plant in the country’s Central Java region.
Minister Pandjaitan reportedly said “Tesla’s team is moving really fast” but added the Indonesian public should be “patient” while the negotiations were conducted.
“They [Tesla] came to Indonesia earlier this month, visited several nickel processing plants, and we also responded quickly to show our seriousness and support,” Mr Pandjaitan said.
“Making an investment decision is not as easy as snapping fingers. It takes a long process and time. Moreover, this is an investment of huge value. So we have to be patient.
“But what must be remembered, this is still in the negotiation stage, so once again, all must be patient.”
Mr Pandjaitan’s comments come after his colleague, Investment Minister Bahlil Lahadalia, claimed the electric car giant would “enter Indonesia this year”.
“God willing, Tesla will enter Indonesia this year. But I can’t announce the month yet. Let’s wait, because we haven’t signed an agreement yet. How much investment is still being kept secret, still waiting. But this is good stuff, big stuff,” Minister Lahadalia said.
Tesla CEO Elon Musk has previously hinted at plans to invest in Indonesia and said he was “fired up” after a May 14 meeting with Indonesian President Joko Widodo.
“We’re going to look closely from the Tesla and SpaceX standpoint to try to do some partnerships in Indonesia,” Mr Musk said after meeting with President Widodo.
The Indonesian President, meanwhile, said in a statement that the pair discussed “technology and innovation” and revealed Mr Musk had plans to visit the country in November 2022.
Tesla already has a base in Asia with its Shanghai gigafactory, but the site has been plagued by production shutdowns and delays in recent months as a result of the Chinese government’s strict measures to combat the spread of coronavirus.
Indonesia is logical choice for a second Tesla manufacturing facility in Asia given it is the world’s largest producer of nickel, a key component in the production of electric car batteries.
It’s also a major exporter of other metals integral to electric car production, including cobalt, copper and bauxite.
South Korean carmaker Hyundai has already identified Indonesia as a growth market, opening a plant to produce its Ioniq 5 electric car there in March 2022.
The country has also outlined a plan to produce two million electric vehicles by 2025, with President Widodo hoping to establish what he describes as an “ecosystem” of electric car production – from supplying the metals required for car components to producing the cars themselves.
“We have to be a key player in the global supply chain of the electric vehicle industry,” Mr Widodo has said.
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