Global electric vehicle leaders Tesla and BYD were reportedly concluding investment negotiations with the Indonesian government in mid-January, as disclosed by Coordinating Minister of Maritime Affairs and Natural Resources Luhut Panjaitan.
“All the top global carmakers are coming to us. BYD, Tesla, Hyundai and others are all finalizing deals with Indonesia.”
Luhut Panjaitan, Coordinating Minister of Maritime Affairs and Natural Resources
Now, recent statements of Senior Minister Luhut Panjaitan suggest that the government of Indonesia is completing a new batch of incentives to further attract global electric vehicle players.
The Senior Minister also revealed that the government is still negotiating with EV giants, including Tesla and BYD.
What’s the big deal?
Coordinating Minister of Maritime Affairs and Natural Resources Pandjaitan hinted that the new incentives would be similar to those in Thailand and Vietnam. However, he omitted to elaborate on the specifics during his speech at the nickel industry conference of CNBC Indonesia.
For context, Indonesia has the biggest economy in Southeast Asia. It has been actively working to boost investments from global electric automakers by leveraging its significant nickel reserves.
In fact, the country also boasts the largest nickel reserves in the world, which is a crucial mineral for EV batteries.
Despite the abundance of the metal, some EV makers like BYD have instead decided to pursue the country’s rivals, Thailand and Vietnam. It is unsurprising given that Thailand is widely recognized as the region’s auto hub.
In response, Indonesia announced plans to intensify its efforts to attract investors. According to the Senior Minister, they are just now waiting for President Joko Widodo’s green light.
“Tomorrow we are going to finalise incentives that we are going to give to any EV investment in Indonesia.”
Luhut Panjaitan, Coordinating Minister of Maritime Affairs and Natural Resources
The Senior Minister also announced his impending meeting with BYD executives in Chengdu on Thursday. After that, he will also meet Tesla CEO Elon Musk in California on August 3.
See Also:
- Tesla, BYD to invest in EV production plants in Indonesia
- BYD to establish an EV production plant in Europe
- Indonesia cuts EV tax, boosting sales for Hyundai and Wuling
- Southeast Asia lags in terms of electric vehicle adoptions
- Three Southeast Asian countries are competing for China’s BYD plant
- Global Electric Vehicle sales surged more than 55% in 2022
The Indonesian government has been trying to win over Tesla for many years already. It aims to have the American automaker establish local production in the country. However, as EV-a2z has been reporting, the Tesla Chief seems to finally choose India for its next Gigafactoty.
Nonetheless, Tesla may still develop a new Gigafactory in Indonesia, but the matter is when.
