Jakarta, CNBC Indonesia – Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, gave the latest news on plans by Tesla, an electric car manufacturer from the United States (US), to invest in electric batteries in Indonesia .
Speaking during an exclusive dialogue in the economic update segment of CNBC’s Squawk Box program on Monday (8/8/2022), Luhut admitted that talks between the Indonesian government and Tesla are still ongoing. .
“We are still in constant communication with Tesla as Tesla is still busy with internal affairs, Twitter issues,” Luhut said.
However, Luhut claimed that Tesla had signed a cooperation contract with one of the industries in the Morowali region. However, the former presidential chief of staff did not specify the company in question.
“Already engage(involved) around US$5 billion,” Luhut said.
Luhut pointed out that the Indonesian government has no significant obstacles in the negotiation process with Tesla. However, Luhut said, the internal problems faced by Elon Musk’s company are currently considered more significant.
Pictured: President Joko Widodo visited Space X in Boca Chica, USA on Saturday, May 14, 2022. The President arrived at Space X around 10:30 a.m. local time and was greeted by Elon Musk as the founder of Space X. (Photo: Press Office of the Presidential Secretariat)
“As I said earlier, there is their domestic problem, I don’t want to interfere either. Our communication is still going on. He doesn’t have much choice, we’ll see,” he said. Explain.
Previously, Chairman Joko Widodo (Jokowi) revealed the contents of the conversation when he met Tesla CEO Elon Musk at his factory last May.
At the meeting, Jokowi explained a number of reasons why Tesla should invest in Indonesia, including to facilitate the supply chain from upstream industry to downstream production of electric vehicles.
“We’ve had a lot of discussions, including how Tesla can build its industry from upstream to downstream, starting with the foundry, then building the cathode and precursor industry, building batteries for VE, by building lithium batteries. [dan] then the vehicle factory. Everything is in Indonesia, because it is very effective. That’s what I’m proposing,” Jokowi told CNBC International a while ago.
Indonesia, Southeast Asia’s largest economy, has abundant reserves of tin, copper, nickel, cobalt and bauxite, some of which are key materials for electric vehicle batteries.
“We want to build an industrial ecosystem for lithium batteries,” Jokowi said.
Jokowi told Elon Musk that Tesla could base its entire supply chain domestically. Musk took concrete steps, namely sending a team to Indonesia six weeks ago.
“To check the nickel potential, to check the environmental aspects, but the car-related team hasn’t come yet.” Jokowi said.
Responding to Jokowi’s invitation, Elon Musk flies to Indonesia in November
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