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How Luhut convinced Elon Musk for Tesla to invest in electric car factory in Indonesia

Tempo - December 2, 2022

Dicky Kurniawan, Jakarta – The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, expressed optimism that Tesla would invest in the electric car industry in Indonesia. Luhut said that he had talks with Tesla CEO Elon Musk about several advantages of investing in the country.

"I told Tesla that building a factory here would raise the sales and exports of electric cars. It would go up for sure," said Luhut Pandjaitan at the welcoming event of 'Stronger Investment Post-Pandemic' in Jakarta last Tuesday, November 29.

The minister has yet to be able to reveal the results of his conversation with Elon Musk. However, he remains confident that Tesla manufacturer will invest in Indonesia. "I'm very sure, they will come to us."

Luhut explained the advantages of developing an electric car factory in Indonesia to Tesla.

According to him, Indonesia has a market share of 60 million people, competitive production costs, and abundant raw materials of nickel. The price of electricity in Indonesia can even be 5 cents per kWh and the cost of transportation of raw materials is only $2.

Compared to China, Luhut went on, the transportation costs $15-20, and electricity costs 10-12 cents.

Source: https://en.tempo.co/read/1663655/how-luhut-convinced-elon-musk-for-tesla-to-invest-in-electric-car-factory-in-indonesi