The automaker and clean energy company Tesla makes a big move in Asia as it is finalizing deals with the Indonesian authorities to invest in their electric-vehicle industry.
Tesla’s deal is coming after reports disclose that the automaker in 2021 had sent an investment proposal to Indonesia to possibly build a full battery factory.
Following Musk’s meeting with the country’s President Joko “Jokowi” Widodo in May 2022, there was an agreement for Tesla to build a factory and electric vehicle plant at an Industrial complex in central java province.
Reports disclose that the plant would produce as many as 1 million cars a year, in line with Tesla’s ambition for all its factories globally to eventually reach the capacity.
The discussions also include plans for multiple factories in the country serving different functions, including production and supply chain.
It is however interesting to note that Tesla is not the only Electric automaker that seeks to invest in Indonesia.
Reports reveal that Chinese automaker BYD and South Korea’s Hyundai motor co., are also finalizing deals to invest in the Asian country’s Electric-Vehicle industry.
Coordinating minister for maritime affairs and investment of Indonesia Luhut Panjaitan said, “all the top global carmakers are coming to us, BYD, Tesla, Hyundai, and others are all finalizing deals with Indonesia”.
Meanwhile, the country’s President Joko Widodo has set out a vision of building out an end-to-end electric vehicle supply chain onshore by offering potential investors access to Indonesia’s resources of key battery metals as well as its more than 270 million consumers.
Investors King understands that the Indonesian government is aggressively encouraging the national automotive industry to develop electric vehicles. The reason is the trend of future vehicles is towards the concept of saving energy and being environmentally friendly.
The government plans to subsidize the purchase of electric vehicles with the aim of reaching 2.5 million EV users by 2025 and reducing air pollution by 29% by 2030.