Indonesian Minister Comments on Tesla Opening Factory in India

TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan responded to the news about electric automaker Tesla Inc. which plans to build a factory in India.  

“No, [Tesla] does not [build a factory in India]. They only open a showroom,” Luhut said at Halim Station, East Jakarta, on Thursday, June 22, 2023.

Mass news reported that the United States electric car manufacturer planned to build a factory in India after failing last year due to permit issues. However, Tesla CEO Elon Musk said his company will soon make investments in India. This plan was reportedly conveyed by Musk when meeting with Indian Prime Minister Narendra Modi in the United States.

According to Musk, India has strong potential for a sustainable energy future, including solar power, stationary battery packs, and electric vehicles. He hoped to bring SpaceX's Starlink satellite internet service to India as well.

“He (Modi) really cares about India because he's pushing us to make significant investments in India, which is something we intend to do,” Musk told reporters after the meeting. “I am confident that Tesla will be in India and will do so as soon as humanly possible.”

Previously, news about Tesla’s plan to build a factory in Indonesia also emerged. Bloomberg, as quoted by Reuters, reported that Tesla will soon sign a deal to build production facilities in Indonesia with a capacity of one million units. The report, however, did not include sources.

Elon Musk immediately made a response. “Please be cautious about writing articles citing 'unnamed sources', as they are frequently false,” he replied in a tweet talking of the report in January 2023.

At that time, Luhut said that negotiations with Tesla are still ongoing. Yet he refused to provide further information due to the confidentiality of the agreement. Tesla also declined to respond to Reuters' request for comments.

MOH KHORY ALFARIZI | REUTERS | RIANI SANUSI PUTRI

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