Luhut to Tesla: Indonesia Is Not a Banana Republic

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the United States-based electric car manufacturer Tesla had again expressed interest in investing in Indonesia after the previous plan was canceled. Luhut asserted that if so, Tesla must meet his requirements.

"I got a call from America this morning, Tesla said they wanted to make a deal with us," said Luhut at the closing ceremony of the business-matching on domestic products event, which was broadcasted online from Bali on Thursday, March 24, 2022.

Luhut recalled that two years ago, Elon Musk's firm planned to put investment in developing lithium batteries in Indonesia. Yet the plan was canceled because they tended to overly dictate Indonesia.

"I said, 'two years ago you called me, wanting to produce a lithium battery.' You... all want to dictate [Indonesia], and I said, 'You cannot do this. Today is different. We have to be equal'. I said you can't do that anymore. This country is not a banana republic! This country is a great country!" Luhut remarked as quoted from Bisnis.com.

Luhut remembered when Tesla wanted to enter Indonesia and the firm had to comply with the conditions given by the Indonesian government. This, Luhut continued, was also as applied to other investors, including China.

A number of conditions requested by the Indonesian government for foreign investors include conducting technology transfer, using eco-friendly technology, training local workers, and providing added value.

"I don't want you (Tesla) to make conditions for us. I make conditions for you," said Luhut.

BISNIS.COM