Elon Musk's Business Expansion Plan In Indonesia

Elon Musk (Sumber: Wikimedia Commons)

JAKARTA - Indonesia has natural resources that can be developed. The President of the Republic of Indonesia Joko Widodo (Jokowi) invited the second richest person in the world, Elon Musk to invest in the country.

Even via telephone, Jokowi directly asked Musk to build an electric car factory and a SpaceX rocket launch pad in Indonesia.

Previously, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan said that he had exchanged views on the electric car industry and various other main components. Given that Indonesia has the largest nickel reserves that can be processed into lithium-ion batteries and batteries for electric cars.

"In addition, Indonesian President Joko Widodo also invited Tesla to see Indonesia as a launch pad for SpaceX," said the Coordinating Ministry for Marves in an official statement quoted by VOI, Wednesday, December 16.

Seeing that opportunity, Musk did not close his eyes and ears. He expressed interest in working with various countries, including Indonesia, in the development of a battery-based electricity industry.

But of course, Musk has a number of requirements that must be considered by many countries if he wants to invest in that country. This was conveyed by the Deputy for Investment Planning at the Investment Coordinating Board (BKPM) Nurul Ichwan at the Indonesia Mining Outlook 2021 event yesterday.

Ichwan said Musk would not hesitate to invest in a country that produces nickel, which is a component of the battery, as long as his mining practices pay attention to environmental sustainability.

"He noted that he will not cooperate with any country that is in the process of producing its battery industry or nickel mining that does not pay attention to environmental protection and safety," Ichwan said.

Ichwan added that this condition must be met by Indonesia if it wants to bring in Tesla's investment. Moreover, according to Ichwan, Indonesia is a country with the world's largest nickel reserves.

On his social media, Musk also stated the same thing, ready to give a "giant long-term contract," as long as the nickel purchased by his company is mined "efficiently and environmentally sensitive.

Based on data from the Geological Agency of the Ministry of Energy and Mineral Resources (ESDM) as of July 2020, it was recorded that Indonesia's total nickel ore resources reached 11.88 million tons. Meanwhile, the total reserves of nickel ore reached 4.34 million tons.

Tesla's illustration (Image Credit: Andreas Dress / Unsplash)

SpaceX's collaboration with Indonesia

In 2018, SpaceX previously had experience working with Indonesia. It is known that SpaceX launched the Telkom Indonesia Merah Putih satellite into orbit, using a Falcon 9 rocket from Cape Canaveral Air Force Station in Florida.

According to reports, Indonesia has a planned space launch station in the pipeline. Last year, the National Aeronautics and Space Agency (LAPAN) announced that they would soon build a space port in Biak, Papua.

So far, LAPAN and the Russian Federal Space Agency (RKA) first worked on the Biak Station plan in 2006 to develop it as a commercial launch site. It's located almost exactly on the equator which can help make rocket launches easier.

In addition, LAPAN has also identified Morotai Island as an ideal space port location. Given that the island is also inhabited by a smaller population, the risk of accidents can be lower.

Not only proposing conditions, Musk will also immediately send his team to Indonesia in January 2021. The aim is to explore investment opportunities offered directly by President Jokowi related to investment in electric car factories in the country.

Unfortunately, the government did not explain further about the potential of Tesla to invest in Indonesia. However, according to the Minister of Industry, Agus Gumiwang Kartasasmita, there is a plan that the Tesla factory will soon be established in the Batang Integrated Industrial Zone, Central Java.

Indonesia Has Competitors

Not only in Indonesia, the father of technology Elon Musk also looks at several other countries in Asia, apart from China. Because the Tesla factory called Gigafactory 3 is already in the Bamboo Curtain Country at this time.

From the Hindustan Times report, the choice for Elon Musk to find a place for his next Asian gigafactory will likely depend on the electric vehicle market as well.

Currently, among all Asian countries apart from China, Japan, and Korea tops the list of popular EV places. India might also come to Musk's mind as land and labor both tend to be cheaper than most other viable options.

The plan, Musk will offer a locally made Tesla Model 3 with a longer driving distance. Later, Tesla also aims to produce its new Model Y crossover from this facility as well.

Tesla has been looking for a new place to set up factories outside the US for some time. Elon Musk is also reported to have traveled the world looking for a new venue for his gigafactory.

Musk's recent visit to the UK has also raised speculation that he is looking for a location to set up his second facility in Europe. First, it is located in Germany, is under construction, and is above Musk's priorities. Tesla plans to build 500,000 electric vehicles a year at its new factory on the outskirts of Berlin.