What are Elon Musk's Investment Plans in Indonesia?

Summary

The world’s richest man Elon Musk said the nickel price was too high. Tesla's Chief Executive Officer (CEO) remarks are clearly not good for Indonesia as the world's largest producer and owner of nickel reserves. Moreover, the government seeks to attract Tesla's investment in Indonesia.

"Many car manufacturers and battery companies are shifting from using nickel to cheaper technology, including Tesla," Septian Hario Seto, Deputy for Investment and Mining at the Coordinating Ministry for Maritime Affairs and Investment, told CNBC Indonesia Wednesday.

Even so, Musk and Tesla sent a team to Indonesia to see the potential for cooperation. "The government wants a win-win cooperation, which is the bottom line for us," Hario said. The government is still looking for a middle ground to cooperate with the US electric carmaker. In several countries, including Germany and China, Tesla fully controls operating companies. Meanwhile, in Indonesia, the government wants Tesla to cooperate with local companies.

Hario said the government expects Tesla to bring in investment to build a battery factory in Indonesia in the first phase. Then, in the medium term, the government could persuade Tesla to build an electric car factory.

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