Image: Laily Rachev

Edited: Elon Musk commented on the article, pointing out that information from unnamed sources may be false. The tweet with his reply has been added to the article.

Tesla is close to reaching a preliminary deal to build a factory in Indonesia. The manufacturer and the government of the country have long been on friendly terms and have met several times for discussions.

Tesla may soon strike a preliminary deal to build a factory in Indonesia, Bloomberg reported, citing people familiar with the matter but not naming them. It is reported that the country attracted the company because it has reserves of metals that are necessary for the production of batteries. Since Tesla has started its own production of batteries, additional production capacity located in Indonesia, where there are reserves of the necessary metals, is a smart move. The production of cars in the country will also be very convenient, as it will be possible to supply the markets of Australia, New Zealand, Taiwan, and other neighboring countries.

According to the information received, with a full expansion, the plant will produce up to 1 million cars a year. Discussions include plans for several facilities in the country with various functions within the manufacturing and supply chain, one of the sources said. At the moment, the deal has not been signed, and the agreement may still not take place.

Indonesian Investment Minister Bahlil Lahadalia said Tesla was in talks with the coordinating ministry for maritime affairs and investment when asked about a potential deal on Wednesday. Prior to this, representatives of the ministries have repeatedly said that they are in negotiations with Tesla, without naming their purpose. Indonesian President Joko Widodo also met Elon Musk in person during a business trip to the US.

Please be cautious about writing articles citing “unnamed sources”, as they are frequently false

— Elon Musk (@elonmusk) January 11, 2023

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