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Luhut reveals updates on Tesla's investment plan in Indonesia

Tempo - May 7, 2024

Annisa Febiola, Riri Rahayu, Majalah Tempo, Jakarta – Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan disclosed the latest updates on Tesla's investment plans in Indonesia.

When met on the sidelines of the 2024 National Development Planning Conference at the Jakarta Convention Center in Central Jakarta on Monday, May 6, Luhut claimed that there had been progress in the partnership plan. However, he declined to provide details.

"There is [the latest news], but I haven't revealed it yet. Later," he said shortly.

In November 2023, Septian Hario Seto, the Deputy for Investment and Mining Coordination, rebutted rumors that Elon Musk had canceled his electric vehicle manufacturing company's investment plans in Indonesia. He asserted that the plan was still under discussion, but was presently postponed."It's ongoing. But given the current global economic conditions, I think he's holding back the investment," Seto told Tempo on the sidelines of the Tempo Electric Vehicle and Battery Conference in Jakarta on November 21, 2023.

Seto said Tesla has not only delayed its investment in Indonesia. "I heard that plans for a factory in Mexico are also on hold. So, let's just wait."

As previously reported, Luhut claimed that Elon Musk was keen on investing in the Indonesian nickel industry, as he deemed it a promising source of raw materials for electric car batteries.

The senior minister also said that the company's production of three million electric vehicles resulted in oversupply, with only 1.8 million units absorbed by the market. Consequently, Tesla has decided to temporarily halt production until the market situation improves.

Apart from Indonesia, other countries that have convinced Tesla to invest in them include Turkey, Saudi Arabia, and Thailand.

Source: https://en.tempo.co/read/1864778/luhut-reveals-updates-on-teslas-investment-plan-in-indonesi