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Jakarta Post

RI delegation meets Musk to talk electric vehicle investment

Meeting aimed to woo Tesla CEO to invest in the country.

Norman Harsono (The Jakarta Post)
Jakarta
Thu, April 28, 2022

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RI delegation meets Musk to talk electric vehicle investment

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oordinating Maritime Affairs and Investment Minister Luhut Pandjaitan led an Indonesian delegation to a meeting with Tesla CEO Elon Musk in the United States to talk about potential investments in Indonesia's electric vehicle (EV) industry.

Leading business figures Anindya Bakrie and Pandu Sjahrir, who were part of the delegation, took to Instagram on Tuesday to post updates about the meeting at Tesla’s new factory in Austin, Texas.

“Our aim is to convince Tesla to explore partnerships with Indonesia in the procurement and development of nickel [as a] raw material for battery cells based on ESG,” Anindya wrote, referring to the environmental, social and governance (ESG) standards of doing business.

Musk said in July 2020 that Tesla would grant a “giant contract for a long period of time” to nickel miners that operated “efficiently and in an environmentally sensitive way” as part of the carmaker’s ESG commitment.

The meeting aimed to woo Tesla to invest in Indonesia amid the government’s efforts to pursue President Joko Widodo’s goal of developing the downstream mining sector.

Read also: Indonesia claims talks with Tesla on EV battery plant still in progress

Indonesia made global headlines in 2020 when it banned nickel ore exports in a bid to force miners to develop their downstream nickel businesses, particularly for manufacturing stainless steel and electric vehicle batteries (EVBs).

The following year in March, the government launched the Indonesia Battery Corporation (IBC), a state-owned EVB company.

Read also: Four SOEs unite to form EV battery producer

The delegation also extended a formal invitation to Musk to join the Business 20 (B20) International Advocacy Caucus under Indonesia’s G20 presidency, added Anindnya, who also chairs the advisory board of the Indonesian Chamber of Commerce and Industry (Kadin).

Meanwhile, Pandu said in his Instagram post that the meeting discussed EVs, renewable energy and the B20 policy, adding that Musk was “very excited” to talk about developing Indonesia’s nickel and EV industries.

Pandu, who is Luhut’s nephew, wears several hats, including chairman of the Indonesian Coal Association (APBI) and a board member of on-demand and payment services superapp Gojek.

“Hopefully this meeting will bring in more [high-tech investment] and Indonesia can be an important part of the global electric vehicle industry,” he wrote in his post.

Indonesian Ambassador to the US Rosan Roeslani, a former Kadin chair, and Luhut’s advisor Rachmat Kaimuddin, a former CEO of e-commerce giant Bukalapak, was also part of the delegation.

State officials said in February 2021 that they had approached Tesla to develop an EVB factory in Indonesia. Talk about the potential deal had gone largely quiet until March 2022, when Luhut announced that Tesla had expressed interest in investing in Indonesia.

According to Kompas.com, however, he emphasized that “Tesla should not be the one setting the terms for us; I should be setting the terms for them, and I did that with China".

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