Ask Tesla To Fulfill The Conditions If Investing In Indonesia, Luhut: This Country Is Not Banana Republic!

JAKARTA - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan emphasized that Tesla must fulfill his requirements if it intends to invest in Indonesia. In the Closing Ceremony Business Matching Domestic Product Shopping 2022 broadcast online from Bali, Thursday, Luhut said the US electric car manufacturer had just expressed interest in re-entering Indonesia after previously canceling.

"This morning, I got a call from America, Tesla said he wanted to make a deal with us," he said, quoted from ANTARA, Saturday, March 26.

Luhut also firmly reminded that two years ago the Elon Musk company had expressed interest in developing lithium batteries in Indonesia. However, the plan was canceled because the company was considered to be dictating too much.

"I said, 'Hey you, it was two years ago that you called me wanting to make a lithium battery'. You... all want to dictate, I said, 'Hey you cannot do this. Today is different. We have to be the same'. I said 'You can't do that anymore. This country is not banana republic! This country is a great country!" Luhut's story.

Indonesia already has business agreements with electric vehicle battery companies from China and South Korea, namely CATL and LG.

Both are claimed to hold nearly 55 percent of the world's lithium battery market. The cooperation with the two companies is believed to make Indonesia a global player for lithium batteries. Moreover, in 2024, Indonesia is targeted to start producing lithium batteries.

Luhut reminded that if Tesla wanted to enter, the company had to comply with the conditions given by the Indonesian government. This, Luhut continued, also applies to other investors, including China.

A number of conditions have been requested by the Indonesian government to foreign investors, including technology transfer, environmentally friendly technology, mandatory educating local workers, and providing added value.

"I don't want a deal, don't let you (Tesla) make conditions for us. I make conditions for you because that's what I did to China. China has never given conditions to me, I (who) gave conditions. You want what if we have to go B to B? It has to be transfer technology, it has to be first class technology, it has to be environmentally friendly. He said he was capable, (so), okay deal," he said.