Indonesia's top investment official has revealed that the government has proposed to Tesla chief executive Elon Musk the idea of building an electric vehicle battery plant in the country, which is rich in nickel.
The announcement came after Musk had a meeting with Indonesian President Joko Widodo during a water conference on the island of Bali. "We made an offer, is it possible to build an EV battery factory, precursor to cathodes, here. And he said he will consider it," said Luhut Binsar Pandjaitan, a significant figure in the cabinet and an associate of Widodo.
Indonesia is eager to develop industries that can utilise its abundant natural resources, including the world's largest nickel reserves, a crucial material for EV batteries and solar panels. The billionaire boss of Tesla and SpaceX, and owner of social platform X, was visiting the Indonesian resort island to launch a Starlink satellite internet service there.
He also addressed officials and experts at the conference on global water challenges, expressing his belief that desalination could solve water shortages if enough energy was provided. According to government data, Indonesia supplies 40% of the world's nickel and has the potential to increase this to 75% by 2030.
The government aims to produce 600,000 electric vehicles by 2030, and mandates that EVs and related components produced in Indonesia must contain 60% local content by 2027. The nation has been trying relentlessly to negotiate deals with Elon Musk's Tesla regarding battery investment, and for Musk's SpaceX to deliver rapid internet access to the country's remote regions.
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Pandjaitan revealed that the president requested the billionaire to invest in an AI centre and for SpaceX to erect a launchpad on Biak, an island situated in Indonesia's easternmost Papua province. However, Musk refrained from formally disclosing any investment plans related to Southeast Asia's most prominent economy.
"Well, I think it's likely that we will be investing," Musk responded to a journalist's enquiry about his intentions for Indonesia at a news conference on Sunday following the ceremonial launch of the Starlink service along with Indonesian government dignitaries. "But I think it's quite likely that my company will invest in Indonesia."
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