Earlier this month, it was reported that Tesla is close to reaching a preliminary agreement set up a manufacturing plant in Indonesia and while nothing has come up yet, Indonesian president Joko Widodo remains confident that Tesla will invest in a manufacturing facility in the republic, Reuters report.
In an effort to attract the American electric car maker, Indonesia has offered the company a variety of incentives, including a nickel mining franchise. “I told him that if he invested in Indonesia, I would give in to nickel,” Jokowi said. Other incentives, he said, include tax breaks and a subsidy program when buying electric vehicles to build a market for Tesla in the country.
Saying his ministers are finalizing the subsidies, Jokowi said he is “confident” Indonesia has an edge over other countries Tesla may be considering investing in, because it has largest nickel reserves and a large domestic market.
Jokowi said accepting the nickel mining offer was up to Tesla, adding that the country was willing to invest in the supply chain of EV batteries and electric cars as a start. “If they want to start from making electric vehicle batteries, that’s fine,” he said.
The country has been attracting Tesla to invest in battery and automotive manufacturing since 2020. Initial talks on a ‘potential investment‘ came to light in October of that year, Jokowi announced the following month that a senior team will be sent to meet the electric vehicle maker’s top executives.
In February 2021, the republic revealed that it had received an investment proposal from Tesla with a focus on EV battery production. Plans for a battery factory in Indonesia impossible, however. Even so, Jokowi’s wish let Tesla make its carsnot just batteries, in Indonesia it’s still not waning, and in April last year, Indonesia resumes negotiations with Tesla for EV and battery production.
The Indonesian President also personally participated in the attraction process, speaking to Elon Musk twice, the first time when he visited the SpaceX facility in Texas last year and after, through a phone call.
Indonesia is not the only country in the game. The news agency’s report adds that South Korea, Canada and Mexico are also scrambling for Tesla to invest in the manufacturing sector. Earlier this week, a spokesman for the Mexican president said that the company was considering setting up an assembly plant near a new Mexico City airport.
Analysts said Mexico could have an edge to win Tesla’s investment because of its proximity to the automaker’s main market, the US, and because vehicles manufactured there can be eligible for the Biden administration’s consumption tax credits. If Tesla invests in battery production in Indonesia, it will be the first such facility in Asia.
