Luhut Speaks about Tesla's Investment in Indonesia

TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan opened up about the government’s continuous negotiations with Tesla. According to him, the government is still approaching the United States electric car manufacturer to build production facilities in the country.

“They still have a commitment of around one million cars in this region. We'll see in the next few days whether or not they will enter Indonesia,” Luhut said at the press conference on electric vehicle incentives, on Monday, March 6, 2023.

According to him, foreign investors have a number of considerations to invest in the Indonesian EV industry, including incentives. The government has earlier announced incentives for the purchase of electric motorbikes which will be effective starting March 20, 2023.

Luhut mentioned that neighboring countries, such as Thailand, have provided incentives to accelerate the use of EV in their countries. Indonesia thus needs to follow the strategy.

“If the incentive program runs smoothly and mass adoption occurs, the domestic industry will be established and EV prices will be more affordable in the future,” said Luhut.

At present, he claimed several foreign investors are not fully interested in investing in Indonesia because no incentives are offered by the government.

Quoted from Reuters on February 1, President Joko Jokowi Widodo said the government continued to negotiate with Tesla regarding investment in the production facility of EV batteries in Indonesia.

The government offered incentives ranging from tax breaks to nickel mining concessions. “I said to him that if you invest in Indonesia, I will give the concession of nickel,” Jokowi said.

DICKY KURNIAWAN

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