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Luhut claims progress on Tesla as govt rolls out EV incentives
Indonesia is pushing for a greater role in the global electric vehicle market with incentives for producers and subsidies for consumers, and the government says more producers are looking to set up shop in the country.
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Four thumbs-up: Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan (left) meets Tesla, Inc CEO Elon Musk at Gigafactory Tesla in Austin, Texas, the United States, in April 2022. The two reportedly talked about the possibility of Tesla investing in Indonesia. (Courtesy of/Instagram @luhut.pandjaitan)
M
ore electric vehicle (EV) producers are looking to build factories in Indonesia, the government has stated, in a sign that generous incentives and subsidies both upstream and downstream are paying off.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said on Monday that China’s Wuling and South Korea’s Hyundai were planning to build additional manufacturing facilities in Indonesia.
Furthermore, the government was aiming to get new carmakers, such as China-based BYD Auto, to build EV assembly plants in Indonesia, Luhut said.
“As for Tesla, we are still in a nondisclosure agreement, but I can say that there has been significant progress,” Luhut told reporters after a media briefing in Jakarta.
Read also: Indonesia doubles down on EV incentives to hit tipping point
Taufiek Bawazier, the Industry Ministry’s director general of metals, machinery, transportation equipment and electronics industry (ILMATE), said the rollout of government incentives had meant more EV producers were interested in investing in Indonesia.
As of now, three new carmakers are willing to come, he said, declining to disclose their brands for reasons of confidentiality.
