Tesla CEO Elon Musk had expressed his interest in investing in electric batteries in Indonesia in April. However, President Joko Widodo said this US company must also produce electric cars in the country.
This is to create more value in increasing state revenues. In addition, this direct investment can provide more job opportunities. āWhat we want is an electric car, not a battery. For Tesla, we want them to produce electric cars in Indonesia,” said Joko Widodo
Joko Widodo expects the same from a number of global automotive companies such as Ford Motor Co, Hyundai Motor Co, Toyota Motor Corp and Suzuki Motor Corp.
“We want a large electric car ecosystem,” said Joko Widodo.
This is so that Indonesia is not seen as a country that only supplies raw materials or component manufacturers in the global electric vehicle supply chain.
As a country that stores a quarter of global nickel reserves, Indonesia is considered to have a great opportunity as a destination country for car and battery manufacturers, including Tesla. Because, they are looking for raw materials for batteries.
Tesla has also reportedly secured a $5 billion nickel supply deal.
“It’s still a discussion, everything takes time. I don’t want it to go fast without results. This requires intense communication and the results will be seen,” said Joko Widodo, when asked about the factors holding back the agreement with Tesla.
On this occasion, Joko Widodo also stated that Indonesia has a zero emission target by 2060. One way to achieve this is to implement a carbon tax before the end of this year.
The levy was postponed at the beginning of the year as the government tried to protect citizens from the effects of rising food and fuel prices.
Indonesia will be the first developing country in Asia to impose a tax on emissions at a rate of US$ 2.02 per tonne of CO2 equivalent. At the initial stage, this regulation only applies to coal-fired power plants.
āWe have renewable energy potential, but switching from coal to renewable energy is not easy. Because the price of coal is still cheaper,” said Joko Widodo.
Tesla Said To Build Battery And EVs Factory In Indonesia, Official Says
