Widodo of Indonesia Has Urged Tesla To Manufacture Its Electric Vehicles In Indonesia

The president of Indonesia, Joko Widodo, has stated that his country is interested in developing a “vast ecosystem of electric cars.”
In comments made to Bloomberg News on Thursday, Indonesian President Joko Widodo pushed electric vehicle (EV) manufacturer Tesla to manufacture its cars and batteries in the country. Widodo was urging Tesla to produce its vehicles in Indonesia.

In an interview, the President of Indonesia, who is more commonly referred to as Jokowi, stated that the country’s goal is not merely to manufacture batteries from its natural resources but rather to create a “vast ecosystem of electric cars.”
He also stated that Indonesia was contemplating levying a tax on the export of nickel this year in order to increase revenue. Officials have said in the past that this may take place as early as the third quarter of the year.

Earlier this year, the president of the country and other senior government officials met with Elon Musk, the founder of Tesla, and during those meetings, they are reported to have asked Musk to consider the Southeast Asian nation as a hub for the production of automobiles in addition to the production of batteries.

A request for response was submitted to representatives of Tesla, but they did not react right away. In response to concerns about the potential business partnership with Tesla, the Indonesian Ministry of Investment did not provide a response.

Earlier this month, Luhut Pandjaitan, a senior Indonesian minister who is overseeing talks with Tesla, told the media that the American company has struck deals worth approximately $5 billion to buy nickel products from nickel-processing companies operating out of Indonesia’s Morowali in Sulawesi island. These companies are located in Indonesia’s Morowali. The lithium batteries developed by Tesla will make use of the nickel materials. Luhut also stated that his ministry was still in the process of talking with Tesla, but that Musk was “occupied with domestic affairs, particularly Twitter.”

Twitter, a social media firm, and Musk are currently engaged in legal action against one another over Musk’s attempt to back out of his agreement to acquire Twitter for $44 billion.

Jokowi extended an invitation to Musk to visit Indonesia in November, when the country will be hosting a leaders summit for the Group of 20 leading economies. This invitation was extended during their meeting in May.

Advertisement

Companies such as Toyota Motor Corp and Mitsubishi Motors Corp of Japan, as well as Hyundai Motor Group of South Korea, are examples of businesses that have either already invested in electric vehicle manufacturing in Indonesia or stated their intention to do so.
SGMW Motor Indonesia, an electric vehicle (EV) assembly factory, is located in the resource-rich nation of Indonesia. SGMW Motor Indonesia is a joint venture between SAIC Motor Corp Ltd, General Motors Co., and Wuling Motors.

Read More Financial News Here