JAKARTA - The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that his party had never mentioned the electric car manufacturer owned by Elon Musk Tesla Inc. will invest in building an electric car factory in Indonesia.
"So we never talked about (Tesla building) a car factory", said Luhut Pandjaitan at the CNBC Outlook 2021 event, Thursday, February 25.
Luhut's statement was in response to the news that Tesla chose India as his second production base in Asia. Currently, Tesla is nearing the final stages of reaching an agreement to produce electric cars in South India, Karnataka.
If the agreement between Elon Musk and the Government of India is successful, then Tesla will have three production bases for electric cars, namely in the United States, China, and India.
Luhut emphasized that Tesla is currently still considering investing in Indonesia in 6 sectors including Starlink, launching pad, hypersonic, lithium batteries, and energy stabilizers.
"We make sure the negotiations are still ongoing", he said.
According to Luhut, the development of lithium batteries can be mass-produced in 2023. In fact, there are already several large companies involved in the production, including LG and CATL.
Luhut is also optimistic that Indonesia can become a global supply chain-related to lithium batteries and their derivatives. This is because Indonesia has the natural resources needed for lithium batteries.
"We are integrated. This nickel ore has a smelter, its derivative, then copper has a smelter and its derivatives as well, one of the derivatives is sulfuric acid and this is what lithium batteries need. If possible, we will go there", he said.
Previously, the Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said there was hope for the 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 news that Tesla was increasingly positive about 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.
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