TEMPO.CO, Jakarta - United States-based automaker Tesla has signed deals to purchase nickel products from two Indonesian companies, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan has reported.

Luhut said one of the contracts is worth US$5 billion or Rp74.5 trillion. The nickel goods are reportedly for the production of lithium batteries for electric vehicles.

“Tesla has signed contracts with two companies, one of them is Huayou. It is a five-year contract. This is Tesla's first stage of entering Indonesia,” said Luhut at an event on Indonesia's post-pandemic investment attraction, Monday, August 8, 2022.

The former Presidential Chief of Staff also explained that the two nickel processing companies are operated in Morowali, Sulawesi. “Tesla is still in the negotiation stage, it is still busy with Twitter issues,” he explained

Apart from Tesla, Foxconn and Ford have started investing in Indonesia. Luhut estimated that Ford's investment value will reach US$2.5 billion or Rp37.1 trillion.

“Volkswagen (VW) from Germany will also enter [the country] as it will cooperate with a Chinese company. In addition, there is also Bosch from Germany that also wants to invest,” Luhut added.

In April 2022, Luhut met Tesla CEO Elon Musk in the United States. Luhut said that during the meeting Musk expressed his interest in the huge potential of Indonesia’s nickel industry. Musk also said of Indonesia's promising potential of raw materials supply for electric car batteries.

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