Tesla intends to attract Indonesia

Tesla is just one of several automakers that are set to be wooed by incentives that would encourage them to invest in Indonesia as the country continues its campaign to attract the world’s leading automaker.

Just as India has tried to get Tesla to commit to a production facility in its country, Indonesia has been making attempts for years as well.

The most significant developments between Tesla and the Indonesian government have occurred over the past year, as officials like President Joko “Jokowi” Widodo, Indonesian Senior Cabinet Minister Luhut Pandjaitan, and Industry Minister Agus Gumiwang Kartasasmita have all held discussions with CEO Elon Musk.

These discussions have been ongoing since 2020, but earlier this year, developments became more serious as the country offered its rich nickel reserves to help support battery production.

In January, Bloomberg reported Tesla was nearing the agreement of terms with Indonesia to build a one-million-unit annual vehicle production plant. Investment Minister Bahlil Lahadalia said the country was also in contact with Tesla, and a potential deal was on the horizon.

Now, Reuters is reporting that Indonesia is planning to offer considerable incentives to companies, including Tesla and BYD, and they’re willing to benchmark their offers against other countries that may be trying to win over the same companies.

Vietnam and Thailand also are looking to win the investment of a major automaker, and Indonesia is planning to beat their offers.

BYD has already committed to a production facility in Thailand.

Luhut said the incentive packages are being finalized:

“Tomorrow, we are going to finalize incentives that we are going to give to any EV investment in Indonesia.”

Tesla has been in talks with several countries across the world, including India, Canada, France, and reportedly Spain. Although, the automaker reportedly pulled out of the latter option after details of a potential deal were leaked.