Tesla Won't Invest in Building a Factory in Indonesia Anytime Soon

Image: Tesla

Tesla is unlikely to start establishing a manufacturing plant in Indonesia anytime soon, the minister said. After meeting with Elon Musk last month, Tesla made it clear that due to the unfavorable situation on the world stage, the company will suspend investment in new international production sites.

Indonesia does not expect Tesla to invest in the country anytime soon. This was announced after the coordinating minister for maritime affairs and investment Luhut Panjaitan met with Elon Musk last month. At the time, he shared what had been discussed during the meeting. Tesla has made it clear that it does not plan to invest in international manufacturing sites any time soon due to the unstable economic situation in the world.

“I said fine, we are doing OK if you cannot invest in Indonesia for a moment, no problem,” said Panjaitan.

Speaking Wednesday at the Bloomberg CEO Forum in Jakarta, Panjaitan again clarified that Musk was concerned about the global economic outlook and oversupply in the electric vehicle industry.

Indonesian officials have repeatedly said that Tesla intends to build a factory to produce electric vehicles and batteries. Similar statements appeared as early as 2022. It is possible that the parties really discussed partnership. However, Elon Musk has refuted several reports claiming that Indonesia and Tesla are close to signing a deal.

Panjaitan also said that Musk is going to visit Indonesia in October for talks between SpaceX and the government over the provision of Starlink satellite internet services in the country. The collaboration could help connect Indonesia's rural areas, especially in the east, for better access to education and health services.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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