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Tesla Must Make Cars Locally, Not Just Batteries, Jokowi Says

Indonesia is willing to take the time needed to convince Elon Musk to see the country as more than just a repository of resources.

Joko Widodo, Indonesia's president, during an interview at the Hyundai Motor Manufacturing Indonesia plant in Cikarang, Indonesia, Aug. 18.
Joko Widodo, Indonesia's president, during an interview at the Hyundai Motor Manufacturing Indonesia plant in Cikarang, Indonesia, Aug. 18.

Indonesia wants Tesla Inc. to make electric cars there, not just batteries, and is willing to take the time needed to convince Elon Musk to see the country as more than just a rich repository of resources. 

“What we want is the electric car, not the battery. For Tesla, we want them to build electric cars in Indonesia,” President Joko Widodo said in an interview with Bloomberg News’ Editor-in-Chief John Micklethwait on Thursday. “We want a huge ecosystem of electric cars.”

WATCH: Indonesia wants Tesla to build EVs -- not just batteries -- and is willing to go the distance to convince CEO Musk, Jokowi says.Source: Bloomberg
WATCH: Indonesia wants Tesla to build EVs -- not just batteries -- and is willing to go the distance to convince CEO Musk, Jokowi says.Source: Bloomberg

Jokowi, as the president is known, said that he had similar expectations from Ford Motor Co., Hyundai Motor Co., Toyota Motor Corp and Suzuki Motor Corp., signaling his intent to seek investment and ensure Indonesia was not relegated to being just a raw material supplier or component maker in the global electric-vehicle supply chain. 

The Southeast Asian nation, home to almost a quarter of global nickel reserves, has emerged as a powerhouse producer in recent years. That makes it an extremely attractive destination for auto and battery-makers, including Tesla, looking for battery materials.

Indonesia Says Tesla Secures $5 Billion Nickel Supply Deal

“It’s still a discussion,” Jokowi said, when asked what’s holding back a deal with Tesla. “Everything needs time. I don’t want to be quick with no result. It needs intense communication and the result will show.”

Joko Widodo in Cikarang on Aug. 18.Photographer: Muhammad Fadli/Bloomberg
Joko Widodo in Cikarang on Aug. 18.Photographer: Muhammad Fadli/Bloomberg

An Indonesian official said in May the country was arranging a meeting between the president and Musk to discuss potential investments. A team from the pioneering EV maker also visited several Indonesian sites. Musk said he was considering a visit “hopefully in November” to explore opportunities, according to a statement from Jokowi’s office in May.

Musk Considers Indonesia Trip to Explore Possible Investments

The government has held talks on potential partnerships with Musk’s team over several years, including on the development of EVs with Tesla and on the possibility of a SpaceX rocket launch site in the country -- but no agreements have been reached.

Indonesia is home to some of the world’s largest deposits of copper, nickel and tin. While most of its nickel output has been so far exported as intermediate material for steel plants in China and elsewhere, Jokowi’s government is now keen to reposition the nation as an EV and battery hub. 

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