Indonesia’s aspirations to land a Gigafactory investment from Tesla seem to be on hold, with Elon Musk’s recent meeting with Coordinating Minister of Maritime and Investment Affairs of Indonesia Luhut Panjaitan failing to secure a commitment from the automaker.
The August meeting, which lasted for over two hours, touched upon a range of topics related to Tesla’s potential investment in the country.
During the Bloomberg CEO Forum in Jakarta this week, Panjaitan revealed that Musk expressed concerns about the global economic outlook and an oversupply in the EV industry. While the Indonesian government eagerly seeks to lure Tesla’s investment, Tesla appears to be taking a cautious approach, choosing not to rush into any commitments.
“I said fine, we are doing OK, if you cannot invest in Indonesia for a moment, no problem,” Panjaitan said.
Earlier this year, reports suggested that Tesla was nearing a preliminary agreement to establish a factory in Indonesia. President Joko Widodo’s vision revolves around creating a complete EV supply chain within the country, leveraging its abundant reserves of battery metals and a sizable consumer market of over 270 million people.
Despite the current uncertainty, there is still hope for Indonesia’s EV dreams. Musk is scheduled to visit Indonesia in October to discuss collaboration on his satellite internet service, Starlink. This partnership could bring improved access to education and healthcare services in Indonesia’s remote areas, particularly in the eastern regions.