Indonesian officials to meet Tesla this week on EV battery plant investment; environment a big topic

Indonesian officials to meet Tesla this week on EV battery plant investment; environment a big topic

Here’s an update on the potential Tesla battery factory in Indonesia. The republic’s president Joko Widodo has said he will send a high-level team to meet with top executives of electric vehicle specialist Tesla this week, Reuters reports. This comes as the ASEAN’s largest country aims to be the world’s biggest producer of EV batteries.

Popularly known as Jokowi, the president told the newswire in an interview last Friday that the trip to the US will be part of Indonesia’s promotion of its new “Omnibus” Job Creation law, which aims to simplify doing business in Indonesia.

“Next week we will send a large team to America and Japan, to promote the Omnibus,” Jokowi said. “It’s very important because we have a great plan to make Indonesia the biggest producer of lithium batteries and we have the biggest nickel (reserves),” he added. The trip comes after RI’s leader congratulated US president-elect Joe Biden on his election win. Jokowi said he hoped a Biden administration would promote “stability and world peace”.

Indonesian officials to meet Tesla this week on EV battery plant investment; environment a big topic

Indonesia’s team will be led by coordinating minister of maritime affairs and investment Luhut Pandjaitan. In a separate interview, Luhut said he would also hold meetings with the World Bank and American fund managers to talk about the Omnibus law and Indonesia’s environmental projects.

Luhut declined to comment specifically on the planned meeting with Tesla, but said that “there is a really good chance” that companies will want to invest in Indonesian nickel processing to reduce costs. He added that Indonesia could make the supply chain of batteries environmentally friendly in seven to eight years by powering smelters with renewable energy sources, so they could sell green batteries for cars in the European market by 2030.

Tesla boss Elon Musk was previously quoted as saying that he is planning to offer a “giant contract for a long period of time” so long as the nickel is mined “efficiently and in an environmentally sensitive way”.

Indonesian officials to meet Tesla this week on EV battery plant investment; environment a big topic

Our ASEAN neighbour 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 to other countries, an activity that has been stopped.

The republic said in September that it had secured a deal for lithium battery plant by South Korea’s LG Chem and China’s Contemporary Amperex Technology Ltd (CATL).

More on Tesla’s latest battery tech here, including the tabless 4680 battery cell design.

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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

  • orangBiasa on Nov 16, 2020 at 1:14 pm

    Soon Indonesia will be ahead of Malaysia

    Like or Dislike: Thumb up 13 Thumb down 4
    • Dr Strange on Nov 16, 2020 at 3:33 pm

      Ahead in being the most polluted country in SEA. Oh wait, they already are the most polluting with every year exporting haze to us and SG.

      Like or Dislike: Thumb up 6 Thumb down 2
    • Luckily our MAI madani holding the EV fort

      Like or Dislike: Thumb up 4 Thumb down 0
    • Don’t just look at headlines. Income per capita for Indonesia is still one of the lowest in the region. State-owned projects like that will only benefit cronies there, with little to trickle down to the average Indonesian.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Suspicion on Nov 16, 2020 at 1:18 pm

    Highly doubt our neighbour can mine the nickel ‘efficiently and in environmentally sensitive ways’ since it will be a state-owned project and corruption is still essential to get things moving there. Not forgetting the fact that even the capital Jakarta is sinking due to uncontrolled environmental exploitation. Tesla most likely only interested in the huge tax exemption being offered.

    Like or Dislike: Thumb up 16 Thumb down 3
  • Dr Strange on Nov 16, 2020 at 1:30 pm

    Pembuatan bateri kimia menyebabkan pencemaran sekitaran. Environment greatly polluted

    Like or Dislike: Thumb up 17 Thumb down 2
    • jibby on Nov 16, 2020 at 3:30 pm

      ya like how you pollute the comment section with your toxicity

      Like or Dislike: Thumb up 4 Thumb down 2
  • seancorr (Member) on Nov 16, 2020 at 2:05 pm

    Another blow to Malaysia wanting to become a leader in the EV segment. Indonesia and Thailand making the headlines lately.

    Like or Dislike: Thumb up 14 Thumb down 5
    • Dr Strange on Nov 16, 2020 at 3:34 pm

      We should not look to make headlines for the wrong reasons later.

      Like or Dislike: Thumb up 4 Thumb down 0
    • Hijauer Grass on Nov 16, 2020 at 5:52 pm

      Time to pack up and find another country

      Like or Dislike: Thumb up 2 Thumb down 0
    • P2 no.1! on Nov 16, 2020 at 7:53 pm

      Smart. Going to EV but sacrifice they own land and polluted with Nickel processing.
      Yeah right Mr.Obvious

      Like or Dislike: Thumb up 3 Thumb down 2
  • stick on Nov 16, 2020 at 3:04 pm

    meanwhile, what is malaysian gov doing?

    Like or Dislike: Thumb up 10 Thumb down 3
    • Dr Strange on Nov 16, 2020 at 3:31 pm

      Battling Covid19 which Indon govt just gave up.

      Like or Dislike: Thumb up 4 Thumb down 3
    • dream_125 on Nov 16, 2020 at 7:50 pm

      “Our ASEAN neighbour is a major producer of nickel, which is a key component in EV batteries.”

      Where shall the gouvernment get nickel resources from?

      Like or Dislike: Thumb up 5 Thumb down 1
  • In Indonesia, it is money > health and environment.

    Like or Dislike: Thumb up 15 Thumb down 2
  • Ahmadjr on Nov 16, 2020 at 4:03 pm

    Good for economy but pollution will increase drastically . Tesla fanbois think they’re saving environment with ev

    Like or Dislike: Thumb up 4 Thumb down 0
  • azrai on Nov 16, 2020 at 4:30 pm

    while across the strait they are busy to declare emergency..

    Like or Dislike: Thumb up 4 Thumb down 0
  • C.P. MOHAN on Nov 16, 2020 at 4:33 pm

    Personally do not see it succeeding as Tesla is quite established in China hence trumps (pardon the pun seeing US-China relationship now) Indonesia in costs, manpower, infrastructure, skill and know how. My bet is India.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Bieight8 on Nov 16, 2020 at 7:35 pm

    Don’t worry we got flying cars…

    Like or Dislike: Thumb up 2 Thumb down 0
 

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