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Luhut reveals why Elon Musk's Tesla yet to invest in Indonesia

Tempo - May 24, 2024

Antara, Grace Gandhi, Jakarta – CEO of Tesla, Elon Musk, has not yet invested in Indonesia due to China's oversupply of electric vehicles (EVs), revealed Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.

Luhut said that the American tycoon is still considering investments, including in Indonesia, due to China's competitive pricing.

"It seems that China's EVs are oversupplied and their prices are cheaper, so he is taking time to deliberate on potential investments," Luhut said after the launch of the book Citarum Harum in Badung, Bali, on Monday, May 20.

He also said that Tesla's factories in Mexico and Germany had curtailed production, indicating that Elon Musk is evaluating global market conditions before making investment decisions.

"They are still assessing the global market. [Once] conditions stabilize, they will proceed with [investments]," he added.

Luhut, however, stressed that Indonesia presents a great alternative for investing in electric vehicles. As previously reported, Elon Musk declined to comment on Tesla's interest in investing in Indonesia, citing a focus on the launch of Starlink. "We want to save that news for a later occasion," he said.

Indonesia is eager to bolster EV production using lithium batteries in the next few years. This proposal for lithium battery investment aligns with the U.S. government's plan to increase EV production up to 11-fold by 2030.

"Without the help of Indonesian nickel, that will never happen. We are keen on collaboration," Luhut remarked.

On a separate occasion, the senior minister disclosed that Elon Musk was contemplating investment in EV batteries in Indonesia.

Source: https://en.tempo.co/read/1871610/luhut-reveals-why-elon-musks-tesla-yet-to-invest-in-indonesi