Tesla’s Investment in Indonesia Is Likely to Be Final This Week

Jokowi and Tesla's Owner, Elon Musk, talked about investment in Indonesia

Tesla’s plan to invest in Indonesia has actually been heard for a long time. After two years running, they never give certainty. Fortunately, Tesla’s investment in Indonesia seems to be finalized this week.

This was revealed by the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan. He revealed that the agreement on Tesla’s investment plans in Indonesia was approaching final.

He will meet with Tesla this week or next week to discuss the US electric car maker’s investment plans in Indonesia. However, Luhut could not say much about plans to cooperate with Tesla because of a non-disclosure agreement (NDA).

Luhut, Thursday (2/2), said that possibly this week or at the latest next week there will be a telephone conference regarding the final agreement.

It is known that Indonesia’s approach to Tesla has been made since 2020. In order to get Tesla to invest in RI, President Joko Widodo (Jokowi) recently revealed the lure if the company owned by Elon Musk wants to open a factory in Indonesia.

Jokowi is confident Tesla will finalize the deal to invest after Indonesia offered Tesla incentives ranging from tax breaks to nickel mining concessions. In addition, Indonesia has large nickel reserves and promising markets or consumers.

“I told him if you invest in Indonesia, I will give you a nickel concession,” Jokowi said referring to the Indonesian mining concession offer as quoted by Reuters, Thursday (2/1).

Jokowi said it was up to Tesla to accept the offer to mine nickel or not. He underlined that Indonesia is open to investment in the supply chain of vehicle batteries and electric cars.

Furthermore, Tesla also wants to invest in the New Capital of Indonesia. This investment is Tesla’s support for the Smart City vision.

This was conveyed by the representative of the US-ASEAN Business Council, Taufikurrahman, at the Mandiri Investment Forum, Thursday (2/2).

“Space X, one of Elon Musk’s companies, will enter Indonesia for an internet business which is much faster than traditional internet because it uses satellite. This will probably help technology a lot for IKN and also for Indonesia as a whole. We ask for your assistance in the licensing process – the (permit),” he said Thursday (2/2).

Taufikurrahman said that currently, the company is in the process of licensing. However, in the middle of the process, SPaxe X was hampered by technical problems.

In response to the plan, the Head of BKPM/Minister of Investment Bahlil Lahadalia said he would immediately provide assistance and speed up the licensing process.

Bahlil emphasized his commitment to being ready to assist investors in investing in Indonesia. According to him, his party will not hold back investments coming into Indonesia.