It is clear from this exciting update that, not only does Tesla continue to actively explore a possible battery factory in Indonesia, the California-based manufacturer appears to have significant government support. Furthermore, Indonesia is incentivizing factory relocations into the integrated industrial area of Batang, Central Java, which include free 10-year land leases, CNBC Indonesia reports.
Coordinating Minister for Maritime Affairs and Investment, General TNI (Purn) Luhut Binsar Pandjaitan, spoke to a conversation reportedly had with Tesla in September. "Before I end my remarks... I just received a call from Tesla in America, they are also interested in building a lithium battery (factory) in Indonesia," said Luhut Wednesday, September 9.
Per Luhut, Tesla is attracted to Indonesia, as the country has some of the world's most robust nickel reserves. When Tesla inquired about the adequacy of the reserves, Luhut continued, explaining: "I said you put the investment here today we will give the reserves. So if we always change from commodity base to downstream. So, we see production downstream. That will turn Indonesia into a great country into the global supply chain."
As Tesmanian previously reported, Indonesia aims to develop a complete home nickel supply chain. The country is focusing on extracting chemicals from batteries, making batteries, and ultimately making electric vehicles. That is why Indonesia has stopped exporting unprocessed nickel ore to support investment in the domestic industry.
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