Tesla CEO Elon Musk met with Indonesian president Joko Widodo last weekend, with the pair discussing potential investments and a follow up visit from Musk to Indonesia later this year.
However, Indonesia’s Investment Minister Bahlil Lahadalia has revealed the pair have also agreed on something much bigger. According to statements made by the minister on Wednesday, Tesla will build their next Gigafactory in Indonesia, a facility that will include both vehicle and battery manufacturing.
The minister elaborated that Tesla hasn’t signed on the dotted line just yet, but said the deal was “good stuff, big stuff,” adding that it will hopefully be finalized this year. According to the minister, the plant will be built in Central Java province.
“God willing, Tesla will enter Indonesia this year. But I can’t announce the month yet. Let’s wait, because we haven’t signed an agreement yet. How much investment is still being kept secret, still waiting. But this is good stuff, big stuff,” he said. (via Benar News)
If the deal becomes official, it will likely include some kind of nickel supply deal. Indonesia is home to one of the largest nickel reserves in the world, one of the key ingredients in EV batteries.
Following the meeting last weekend, Musk said he was “fired up” by Indonesia’s enthusiasm and that they were “looking closely” to collaborate with them on several fronts. Musk also said he hopes to visit Indonesia in November, making a potential announcement before the end of the year a possibility.
Tesla currently has six factories on three continents around the world. Two have opened just this year, with Giga Berlin starting production in March and Giga Texas about to deliver the first cars to customers.
Indonesia sending officials to talk with Tesla executives over possible battery factory