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Indonesia President says Tesla should make its EVs in Indonesia rather than just manufacture batteries here.
Indonesia President Joko Widodo has made it clear that if Tesla wants to have a strong presence in his country, the US-based EV (electric vehicle) giant will have to locally manufacture its cars and not just the batteries used in such cars. In an interview to Bloomberg, Widodo made his position amply clear about wanting an entire EV ecosystem to bloom and flourish in Indonesia.
Indonesia has emerged as a critical country for Tesla, with the company signing $5 billion in nickel deals earlier this month. Nickel is a critical component in the production of batteries, which are at the heart of modern-day EVs. While Indonesia welcomes companies to invest in its nickel reserves, Widodo believes Tesla should manufacture its EVs in his country. “We want the electric vehicle, not the battery.” “We want Tesla to build electric vehicles in Indonesia,” he was quoted as saying. “We want a massive ecosystem of electric vehicles.”
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Widodo also stated that he is willing to give Tesla CEO Elon Musk the time needed to convince him that his country is a manufacturing hub. Musk previously stated that Tesla would build at least 10 factories around the world by 2030 in order to reach a production target of 20 million units per year. “It is still being discussed.” Everything requires time. I don’t want to be quick but ineffective. It requires intense communication, and the outcome will be evident,” Widodo added.
Tesla is reportedly looking for new markets to sell its electric vehicles in, and has been considering India, the world’s fourth-largest automotive market. However, the Indian government has stated unequivocally that Tesla must manufacture its vehicles in India rather than bringing in Chinese-made units from its Shanghai facility. It was also stated that Tesla would not receive any special tax breaks. Musk responded by saying that a manufacturing unit would be considered only if its imported units performed well in the United States.
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