Indonesia Is Luring Tesla to Invest in Country with Promise of Nickel Concession

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Indonesian President Joko Widodo is confident that Tesla will complete a deal to invest in a manufacturing facility in his country. He is trying to lure the company by offering the concession of nickel, tax breaks, and subsidies for the purchase of EVs to stimulate the market.

Indonesia has been coaxing Tesla into investing in the country for years, to build a battery and electric car factory there. Officials are offering the company the ability to tap into its rich nickel ore reserves, which can be processed for use in batteries and is an important component. Indonesian President Joko Widodo, known as Jokowi, has twice held talks with Tesla CEO Elon Musk, according to his statement. They met at his SpaceX facility in Texas in 2022 and also spoke on the phone to try to make a deal.

“I said to him that if you invest in Indonesia, I will give the concession of nickel,” the President said.

Other incentives offered by Jokowi include tax breaks and a subsidy scheme for the purchase of electric vehicles to create a market for Tesla in the country. The president said his ministers were finalizing the subsidies. Indonesia is the fourth most populous country in the world.

Jokowi also noted that he is “confident” that Indonesia has an advantage over other countries that Tesla might consider investing in because it has the largest nickel reserves and a large domestic market. The President stressed that the country is open to investment, even if initially it will be only the production of batteries.

“If they want to start from EV battery, it's OK,” he added.

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