Tesla Choose India Over Indonesia, BKPM: Don't Be Pessimistic, This Stuff Still Ongoing

JAKARTA - Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said there is still hope for an electric car company from the United States (US), namely Tesla, Inc. to invest in Indonesia. Because, he said, currently negotiations between the government and the Elon Musk company are still ongoing.

This followed the news that Tesla was increasingly positive in choosing India as its second production base in Asia. Yet at the same time, Indonesia is also approaching. Elon Musk's company is reportedly nearing the final stages of reaching an agreement to produce electric cars in India.

If the final agreement between Tesla and the Indian government occurs, Tesla will have 3 production bases, namely in the United States, China, and India.

"In business negotiations, there are ups and downs. The world is not over yet, don't be pessimistic, this thing is still going on", he said in a virtual press conference, Wednesday, February 24.

According to Bahlil, his party together with the Coordinating Ministry for Maritime Affairs and Investment are currently following up on Tesla's investment plan.

"I want to say that this is still negotiable, no one will leave. If you leave, you just leave, it's still a process", he explained.

According to Bahlil, previously a trade-off for investment was also carried out by LG Energy Solution Ltd. Within one year. However, LG finally established itself in building an integrated electric vehicle battery industry with an investment value of 9.8 billion US dollars.

"Just like me, how did the negotiations with LG (the agreement to build the electric vehicle battery cell industry). The ups and downs were high. One year later it was clear", he explained.

On the other hand, Bahlil is optimistic that the existence of Law 11/2021 on Job Creation will create a better investment climate for business development and build positive perspectives in Indonesia.

Previously, it was reported that the electric car manufacturer owned by Elon Musk Tesla Inc. increasingly positively choosing India as their second production base in Asia. Tesla is nearing the final stages of reaching an agreement to produce electric cars in India. If this agreement occurs, Tesla will have 3 production bases, namely in the United States, China, and India.

Meanwhile, in early February, the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan revealed that the government had signed a Non-Disclosure Agreement (NDA) with Tesla. He said this was related to the investment of the automotive company.

The government also received a proposal for Tesla's investment plan in Indonesia on Thursday, February 4, 2021.

"We've had six video calls, and the NDA has been signed", he said, during the Special Dialogue: Investment Challenges and Optimism 2021, Jakarta, Wednesday, February 3.

Luhut said that the development of Tesla's investment was continuing despite having experienced delays in visiting Indonesia. Regarding Tesla's investment value, Luhut admitted that he could not tell it. He said the information could not be made public. This is due to the signing of the NDA agreement between the two parties.

"We don't know how much, we can't disclose too much detail to the public", he explained.