Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said on Thursday that the government had proposed that Tesla build a factory in Batang regency, Central Java, with an annual capacity of roughly 500,000 electric vehicles (EV).

The government considers the location suitable because it is near geothermal power sources estimated to be able to supply 400 megawatts (MW) of generating capacity. State-owned Geo Dipa Energi runs geothermal power facilities in the region.

“We could […] channel this green energy [to Tesla’s factory],” Luhut told lawmakers during a meeting with the House of Representatives Budget Commission.

Indonesia has been increasingly protective of its new and renewable energy (EBT) sources as it is making a commitment to decarbonizing its economy, which includes making energy transition the focus of its Group of 20 leadership.

President Joko “Jokowi” Widodo and ministers have floated the idea of banning the export of electricity generated from EBT sources, arguing that should the government export the electricity, it would redirect investments to countries that would receive the electricity from Indonesia.  

Read also: Indonesian ministries clash over clean power export plan

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