Indonesia is nearing the completion of a fresh set of incentives aimed at enticing investment from electric vehicle (EV) manufacturers, as revealed by a senior minister on Tuesday. Coordinating Minister of Maritime Affairs and Natural Resources, Luhut Pandjaitan, stated that the government is currently in discussions with prominent companies such as Tesla and BYD.
Speaking at a nickel industry conference hosted by CNBC Indonesia, Luhut Pandjaitan mentioned that the incentives will be modeled after those offered by competing countries in the region, specifically Thailand and Vietnam. However, specific details of the incentives were not disclosed during his address.
See also: Tesla signed $5 billion contracts to buy nickel for their EV batteries from Indonesia
Indonesia, being the largest economy in Southeast Asia, has been actively seeking to attract EV manufacturers to invest in the country, leveraging its abundant nickel reserves – the world’s largest – which are essential for producing EV batteries.
Despite Indonesia’s efforts, some automakers, like China’s BYD, have opted to invest in Thailand, which holds the status of being the region’s automotive hub.
According to Luhut, the finalization of the incentives is set for tomorrow, pending approval from President Joko Widodo.
Notably, Luhut Pandjaitan is scheduled to meet with BYD executives in Chengdu, China, on Thursday, and a meeting with Tesla’s CEO, Elon Musk, is also on the agenda for August 3 in California, United States.
See also: Hyundai Mobis Commences Construction of Electric Car Battery Plant in Indonesia
Indonesia has been actively pursuing Tesla for several years, aspiring to establish itself as an Asian production hub for the American EV manufacturer. While Tesla has been in discussions with Indian officials for an investment in an EV factory in India, the outcome of the Indonesian negotiations remains to be seen.
