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Indonesia nearing deals with Tesla and BYD for EV production facilities: report

Credit: @jokowi/Twitter

Two of the automotive segment’s most prolific electric vehicle makers may be preparing to establish their presence in Indonesia soon. As per a statement from a senior cabinet minister on Tuesday, Indonesia is closing in on agreements with both Tesla and BYD for electric vehicle facilities in the country. 

During a meeting with provincial governments, Indonesia Coordinating Minister Luhut Pandjaitan noted that Tesla, BYD, and other automakers such as Hyundai are already finalizing deals with the country

“All the biggest (electric) car makers in the world will invest here. BYD Group, the number one in the world, Tesla, the number two, Hyundai and so on, they are all finalizing deals with Indonesia,” the official said, as noted in a Reuters report. 

Tesla and BYD are yet to issue a statement on the matter. 

As the electric vehicle sector grows, so does the need for more battery materials. Among these materials is nickel, which just happens to be abundant in Indonesia. The country is home to 22% of the world’s nickel reserves, thereby making Indonesia an ideal location for any company wishing to make a presence in the EV sector. 

It should be noted that Indonesia was a major nickel ore exporter, but it has since banned exports. This was to ensure that those who invest in the country have enough raw materials. It was then unsurprising to see Indonesia looking to secure a deal with Tesla, as the company is among the undeniable leaders in the electric vehicle market. 

Indonesian officials have met with Tesla leadership over the past year. A delegation from Indonesia has taken a tour of Gigafactory Texas, and President Joko “Jokowi” Widodo also met with Tesla CEO Elon Musk. Last August, Jokowi highlighted that while Indonesia has seen a lot of interest among automakers, he believes that the country should not only be a place where EV battery raw materials are supplied

Instead, Jokowi noted that the country would like carmakers to produce actual electric cars in Indonesia. “What we want is the electric car, not the battery. For Tesla, we want them to build electric cars in Indonesia. We want a huge ecosystem of electric cars,” the president said. 

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Indonesia nearing deals with Tesla and BYD for EV production facilities: report
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