Image: Green Car Reports

Tesla is finalizing a deal to invest in Indonesia, per the coordinating minister for maritime affairs and investment of the country. At the moment, it is not known for certain that the deal is related to the production of batteries, however this seems to be the most likely purpose.

Tesla, as well as Chinese automaker BYD and South Korean Hyundai Motor Co., are finalizing deals to invest in Indonesia's electric vehicle industry, said Luhut Panjaitan, coordinating minister for maritime affairs and investment. “All the top global carmakers are coming to us,” he said in a meeting with local government leaders on Tuesday, Bloomberg reported. “BYD, Tesla, Hyundai and others are all finalizing deals with Indonesia.”

Last week, the publication reported that a deal for Tesla's investment in Indonesia was nearing completion, but cited information from unnamed sources. According to the report, it was about the construction of a factory for the production of electric vehicles, with a capacity of 1 million vehicles per year at all stages of expansion. While this might make sense, it seems more likely that investments will be made in the battery industry.

According to a presentation by Panjaitan on Tuesday, Indonesia expects $30 billion in investment by 2026 to grow its electric vehicle battery ecosystem. The government is also planning to provide an Rs 80 million ($5,270) subsidy for every electric car purchase to encourage domestic adoption, though the details are still being discussed. The cabinet has made a decision on electric vehicles and will make an announcement soon, Panjaitan said on Tuesday, without specifying whether he is referring to foreign investment deals or a subsidy for EVs purchase.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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