Tesla reportedly agrees to set up electric vehicle and battery mega-plants in Indonesia
US electric carmaker Tesla has apparently agreed to invest in battery and electric vehicle manufacturing plants in Indonesia, the country’s investment minister Bahlil Lahadalia said on May 18, without giving more details.
He, however, hinted that the projects are likely to start as early as this year, regional information portal BenarNews, an online affiliate of US-sponsored news service Radio Free Asia, reported.
Jakarta has been trying to woo Tesla for a few years now as it seeks to take advantage of being the world’s largest producer of nickel, a core element in electric vehicle batteries. Jakarta has also set a goal that by 2025, 20 per cent of cars made in Indonesia would be electric vehicles.
No contract signed yet
Tesla agreed to build a battery and an electric vehicle plant at an industrial complex in Central Java province, Lahadalia said.
“God willing, Tesla will enter Indonesia this year,” he told a panel discussion in Jakarta.
“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,” he added.
Elon Musk to visit Indonesia in November
A statement issued by Indonesian President Joko Widodo’s office said that Tesla founder and CEO Elon Musk is planning to visit Indonesia in November, the same month when the Southeast Asian nation hosts the G20 summit 2022 in Bali. An announcement on the potential Tesla factories could be made then.
Meanwhile, some analysts welcomed the news of Tesla’s possible entry in Indonesia but questioned whether Musk was serious about investing in the country, or if the nation has what it takes to host a “gigafactory.” A gigafactory is how the industry refers to Tesla’s manufacturing plants.
Critics are not convinced
Tesla currently has six gigafactories on three continents around the world. Two have opened just this year, with Giga Berlin having started production in March in Germany and Giga Texas in the US about to deliver the first cars to customers. Three others are in the US and another in Shanghai, China.
While the direct supply of nickel and also cobalt and bauxite could be favourable for Tesla when it decides to operate a battery plant in Indonesia, critics have said that Indonesia is still lacking the infrastructure required to host a Tesla “gigafactory,” including reliant electricity supply and transport connections, as well as enough skilled manpower, as opposed to Tesla’s other locations.
[caption id="attachment_38481" align="alignleft" width="300"] Indonesian President Joko Widodo met Tesla CEO Elon Musk earlier this May in Texas, US[/caption] US electric carmaker Tesla has apparently agreed to invest in battery and electric vehicle manufacturing plants in Indonesia, the country’s investment minister Bahlil Lahadalia said on May 18, without giving more details. He, however, hinted that the projects are likely to start as early as this year, regional information portal BenarNews, an online affiliate of US-sponsored news service Radio Free Asia, reported. Jakarta has been trying to woo Tesla for a few years now as it seeks to take advantage of...
US electric carmaker Tesla has apparently agreed to invest in battery and electric vehicle manufacturing plants in Indonesia, the country’s investment minister Bahlil Lahadalia said on May 18, without giving more details.
He, however, hinted that the projects are likely to start as early as this year, regional information portal BenarNews, an online affiliate of US-sponsored news service Radio Free Asia, reported.
Jakarta has been trying to woo Tesla for a few years now as it seeks to take advantage of being the world’s largest producer of nickel, a core element in electric vehicle batteries. Jakarta has also set a goal that by 2025, 20 per cent of cars made in Indonesia would be electric vehicles.
No contract signed yet
Tesla agreed to build a battery and an electric vehicle plant at an industrial complex in Central Java province, Lahadalia said.
“God willing, Tesla will enter Indonesia this year,” he told a panel discussion in Jakarta.
“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,” he added.
Elon Musk to visit Indonesia in November
A statement issued by Indonesian President Joko Widodo’s office said that Tesla founder and CEO Elon Musk is planning to visit Indonesia in November, the same month when the Southeast Asian nation hosts the G20 summit 2022 in Bali. An announcement on the potential Tesla factories could be made then.
Meanwhile, some analysts welcomed the news of Tesla’s possible entry in Indonesia but questioned whether Musk was serious about investing in the country, or if the nation has what it takes to host a “gigafactory.” A gigafactory is how the industry refers to Tesla’s manufacturing plants.
Critics are not convinced
Tesla currently has six gigafactories on three continents around the world. Two have opened just this year, with Giga Berlin having started production in March in Germany and Giga Texas in the US about to deliver the first cars to customers. Three others are in the US and another in Shanghai, China.
While the direct supply of nickel and also cobalt and bauxite could be favourable for Tesla when it decides to operate a battery plant in Indonesia, critics have said that Indonesia is still lacking the infrastructure required to host a Tesla “gigafactory,” including reliant electricity supply and transport connections, as well as enough skilled manpower, as opposed to Tesla’s other locations.
