In a bid to attract Tesla’s investment, Indonesia has put forth a compelling proposition to Elon Musk, the company’s CEO, to consider establishing an electric vehicle (EV) battery plant within the country’s borders. The offer was conveyed by Luhut Pandjaitan, Indonesia’s coordinating minister of investment, following Musk’s meeting with President Joko Widodo on Monday.
During the meeting, which took place in Bali after both Musk and Widodo attended the World Water Forum, the minister revealed that they had extended an invitation to Musk to explore the possibility of constructing an EV battery plant in Indonesia, specifically for the production of precursor cathodes.
Pandjaitan stated, “We made an offer, is it possible to build an EV battery plant here, precursor cathode. And he will consider it.” While Musk was not immediately available for comment, the minister’s remarks suggest that the offer is under serious consideration by the Tesla CEO.
President Widodo also seized the opportunity to propose additional investment opportunities to Musk. Among the proposals was a request for Musk to contemplate investing in an artificial intelligence (AI) centre within the Southeast Asian nation.
Furthermore, the government reiterated its previous offer for SpaceX, Musk’s space exploration company, to construct a launchpad on Biak Island, located in Indonesia’s Papua province. This offer aims to leverage SpaceX’s expertise in space technology and further bolster Indonesia’s burgeoning space industry.
Indonesia’s government has been actively pursuing Tesla for years, aiming to lure the company into establishing manufacturing facilities related to electric vehicles. This persistent effort stems from the government’s desire to develop a robust EV sector, capitalising on the country’s abundant nickel resources, which are crucial for EV battery production.
Musk’s visit to Indonesia coincided with the launch of SpaceX’s satellite internet service, Starlink, for the health sector in the country. While Starlink is now available commercially, the government plans to prioritise its services initially for outer and underdeveloped regions, bridging the digital divide and ensuring access to essential services.
With Starlink owning approximately 60% of the roughly 7,500 satellites orbiting the Earth, the company has established a dominant presence in the satellite internet sphere. This positions SpaceX as a valuable partner for Indonesia in its efforts to enhance connectivity and bridge the digital gap.