Indonesia in talks with Tesla on potential investment

Indonesia in talks with Tesla on potential investment

Indonesia says that it is in early talks with Tesla about a potential investment by the electric car maker in the ASEAN country. This is according to Ayodhia Kalake, a senior official at the republic’s coordinating ministry for maritime and investment, reported by Reuters.

Ayodhia said Tesla had reached out to the government informally about a possible venture, but he did not specify what Elon Musk’s company had in mind. “It was still an early discussion and was not detailed yet. We need further discussion with Tesla,” the official said, adding that Indonesia has a number of incentives for EV investments.

The largest country in Southeast Asia is a major producer of nickel, which is a key component in EV batteries. It has been reported that Indonesia is seeking to develop a full supply chain for nickel at home, especially for extracting battery chemicals, making batteries and eventually building EVs. This is opposed to merely exporting nickel ore, which has been stopped.

The republic said last month that it had secured a deal for lithium battery plant by South Korea’s LG Chem and China’s Contemporary Amperex Technology Ltd (CATL). Earlier this year, Tesla chief Elon Musk urged miners to produce more nickel and offered “giant” long-term contracts if the element was mined “efficiently and in an environmentally sensitive way”.

Also in the region but on an unrelated front, Tesla has been recently spotted scouting for aftersales staff in Singapore, which is a clear hint that the maker of the Model S is looking to set up shop just south of the border. More on Tesla’s latest battery tech here.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • seancorr (Member) on Oct 06, 2020 at 1:14 pm

    Meanwhile in Malaysia the government is still pushing for kereta terbang.

    Like or Dislike: Thumb up 25 Thumb down 0
    • MyNewToy on Oct 06, 2020 at 1:40 pm

      I’m not to worry because when times come, Geely will bring EV technology to Malaysia. The most important are we need to show the support on X50 and X70.

      Like or Dislike: Thumb up 10 Thumb down 10
      • Like that, Indonesia will not buy the exported Proton RHD model
        Proton continue to be jaguh kampung?

        Indonesia buying Tesla, exporting Tesla soon

        Like or Dislike: Thumb up 10 Thumb down 3
        • Ghani on Oct 07, 2020 at 4:38 pm

          Only a very tiny fraction of Indonesians could afford to buy and use Teslas. Others just rely on Gojek.

          Like or Dislike: Thumb up 0 Thumb down 3
        • dream_125 on Oct 07, 2020 at 10:05 pm

          Tesla electronics are made in Penang already… ;)

          Like or Dislike: Thumb up 0 Thumb down 3
    • EV/PHEV are way too expensive for the average Proton/Perodua buyer not to mention the cutthroat replacement battery price. Even MINI EV is a Rm20k premium on the regular version so expect a Rm50k regular Iriz would cost you Rm70k for EV. Hardly a sum an average Iriz buyer would consider.

      Factoring all that, you don’t save any on fuel cost but you suffer worse on depreciation. With such issues, there is little incentive for Proton/Perodua to come out with EV/PHEV atm.

      Like or Dislike: Thumb up 10 Thumb down 1
  • Honda turbo TGDI CVT on Oct 06, 2020 at 1:58 pm

    Indonesia smart,
    Terus find the market EV leading influencer for Marketting, Tax income

    Terus indonesia know how to assemble Tesla EV cars.
    Not just talking on how to assemble a Geely Boyue and Binyue

    Like or Dislike: Thumb up 18 Thumb down 3
    • Actually on Oct 06, 2020 at 8:13 pm

      Yes and No.
      Yes they will get back tax income but not much really. One key factor to pulls in big investor is tax incentive…lost of it and continuous.
      What they gain is a bit of expertise and provide job for the people.

      Why electronic industry still remain in My?
      Its due to tax incentive..most big player are operating in FTZ.Our labour cost still low and we still have edge in quality workforce at intermediate level.

      Like or Dislike: Thumb up 6 Thumb down 0
  • john is otak batu on Oct 06, 2020 at 1:59 pm

    Rubbish investment

    Like or Dislike: Thumb up 4 Thumb down 15
  • 25yrsOld on Oct 06, 2020 at 2:03 pm

    Why sell other EV when you can sell Tesla3, usd39k/RM161k, and with lower labor cost, allow for more taxing income?

    RM150k also can make profit with lower production cost, at indonesia, spearheading the EV mass production in ASEAN. Tiger of Asean.

    Like or Dislike: Thumb up 2 Thumb down 0
  • v-tec fan on Oct 06, 2020 at 3:21 pm

    sedih… is not about GOV or Geely. is about job opportunities. how many job opening if they come to M’Sia.

    Like or Dislike: Thumb up 4 Thumb down 0
    • Bangala on Oct 07, 2020 at 8:53 am

      Yes my brother. How many job opening for my countrymen lost. Now we have to go Indon instead

      Like or Dislike: Thumb up 4 Thumb down 0
      • Bangla on Oct 07, 2020 at 11:27 am

        No brother…high tech manufacturing does not prefer your people. Its not racist but certain people are just suited to certain type of manufacturing.

        Like or Dislike: Thumb up 0 Thumb down 2
  • meanwhile… Malaysia in talks with EACH OTHER to figure out who is the actual government..

    Like or Dislike: Thumb up 7 Thumb down 0
  • Not so soon here la, need to protect Petronas.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Not Toyota Fan on Oct 06, 2020 at 7:55 pm

    Just like their “investment” in the Korean KFX future jet fighter program?

    Tesla should do due diligence.

    Like or Dislike: Thumb up 3 Thumb down 2
  • vivizurianti on Oct 06, 2020 at 11:17 pm

    No worries. Our Malaysia Kereta Terbang will tapau Tesla, yes?

    Like or Dislike: Thumb up 2 Thumb down 0
  • Semi-Value (Member) on Oct 06, 2020 at 11:35 pm

    our flying car how

    Like or Dislike: Thumb up 1 Thumb down 0
 

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