Tesla will lose out without investment in Indonesia: minister

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Tesla will lose out if it does not invest in Indonesia, Investment Minister and Investment Coordinating Board (BKPM) Head Bahlil Lahadalia stated during an online press conference on Wednesday.

As a former businessman, Lahadalia opined that Tesla’s indecisiveness to enter Indonesia is part of a communication strategy in building a negotiation.

At the start, it is possible that Tesla feels that the offer from Indonesia is not yet prospective for its business, he remarked.

At the very least, the minister outlined two reasons for Indonesia having the advantage as a supplier of raw materials for electric car battery.

Firstly, Indonesia’s nickel ore reserves constitute 25 percent of the world’s nickel reserves. Secondly, the mineral supply for other battery raw materials exists within the nation.

“We have manganese. There are four components of electric car battery, specifically manganese, cobalt, nickel, and lithium. Three of these are found in Indonesia,” he pointed out.

“I believe that this is a matter of strategy. They may ask for more during that time, but Mr. Luhut does not want to give it to them during that time,” he remarked.

He deemed that the decision of Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan was typical, given that the nation cannot be dictated by entrepreneurs.

Currently, there are several global investors in the electric vehicle battery industry that have confirmed to invest in Indonesia, Lahadalia noted.

These investors comprise LG, CATL, VW, BASF, and BritishVolt. This certainly has its own appeal for Indonesia.

“If Tesla does not enter, America will be supplied by Europe and the UK. I think, geo-economically speaking, Tesla will see this as something interesting to be developed,” he stated.

Moreover, the minister admitted to not having contacted Pandjaitan concerning the result of his meeting with Tesla.

“I am also curious, but I believe that Mr. Luhut has the skills to lobby with Elon Musk,” he remarked.

He expects that what was agreed upon in the US can be a mutually beneficial deal and bring prosperity to the nation and people.

Tesla had earlier expressed interest to enter Indonesia, but it had not been realized.

The expectation that the electric car factory will enter Indonesia emerged once again after the meeting between CEO of Tesla Inc. Elon Musk and Pandjaitan.

Source: Antara News