Musk to weigh offer for EV battery plant in Indonesia, says minister

Tesla CEO Elon Musk with Luhut Binsar Pandjaitan, Indonesia’s coordinating minister for maritime affairs and investment / Photo credit: Indonesia’s Ministry of Communication and Information (Kominfo)

Elon Musk is said to be considering an offer to set up an Indonesian factory for electric vehicle batteries after a meeting between the Tesla CEO and President Joko Widodo, Reuters reported, citing a remark by senior cabinet minister Luhut Binsar Pandjaitan.

Pandjaitan – who is the country’s coordinating minister for maritime affairs and investment – said the government “made an offer” and asked Musk whether it would be possible “to build an EV battery plant here,” more specifically for the production of cathode precursors.

“And he will consider it,” added Pandjaitan.

Indonesia has long been trying to woo Musk into investing in the country. In March last year, its government launched an incentive program for manufacturers looking to invest in the local EV market, as well as for EV retailers and individuals aiming to switch to electric.

The government of Indonesia aims to get Tesla involved in building EV factories, hoping to use the country’s nickel reserves to grow the EV industry.

According to Pandjaitan, President Widodo also suggested that Musk set up an AI center in Indonesia and that his company SpaceX build a launchpad in Biak, an island in the Papua province.

SpaceX also recently launched Starlink, its satellite internet service, mainly for Indonesia’s health sector. While the service is available for commercial use, the Indonesian government aims to prioritize remote and underdeveloped areas first.

Approximately 60% of nearly 7,500 satellites currently orbiting Earth belong to SpaceX.

See also: Malaysia grants Musk’s Starlink rare ownership exemption to operate in country