Jock explains why Ilona Mask should invest in Indonesia – Reuters

Ilona Maska, who was seen here in the west of New York in early May, is aggressively invited to produce his “end to end” electric cars in resource-rich Indonesia.

Angela Weiss AFP | Getty Images

President Joko Widodo denies that Indonesia became protectionist during his tenure, saying the door remains open to everyone, including Tesla, who want to use the country’s rich natural resources if they build factories that can add value to the local economy.

Vidodo, or Jock, as he is called at home, said the government was in talks with electric car maker Tesla, as well as Ford and other automakers, to build production facilities, including a car plant in Indonesia.

The Indonesian president said he met with Elon Musk, CEO of Tesla and the world’s richest man, in May after US President Joe Biden held a summit of Southeast Asian leaders. Jock said he suggested Tesla could locate its entire supply chain in the country.

“We have had a lot of discussions, especially about how Tesla can build its industry from top to bottom, through the foundry, then build the cathode and predecessor industry, create batteries for electric vehicles, build lithium batteries. [and] then the car factory. Everything is in Indonesia because it is very effective. That’s what I came up with, “Vidodo told CNBC in an exclusive interview Friday in Serang, Banten province.

He said Musk sent the team to Indonesia six weeks ago to “test the potential of nickel, check the environmental aspects, but the car-related team did not come.”

He said the team may visit “soon” to assess the potential. Jock, who also invited Mask to Indonesia’s G-20 summit in Bali this year, said there was “no decision yet” on Tesla’s investment plans in Indonesia.

We want to build an industrial ecosystem for lithium batteries.

Joko Vidodo

President, Indonesia

Indonesia, the largest economy in Southeast Asia, has rich natural deposits of tin, copper, nickel, cobalt and bauxite, some of which are essential materials for batteries for electric cars.

Under Jock, resource-rich Indonesia has banned exports of basic commodities, including crude nickel in 2020, coal in 2021 and edible oil in April. The last measure was aimed at stabilizing domestic prices.

“No, I don’t think it’s protectionism. But we want this added value to be in Indonesia … If we continue to export raw materials, other countries will receive added value, “he said.

In an effort to boost its economy and use its natural resources in domestic production, Indonesia wants to move away from exporting raw materials. He also wants to become a global player in the production of batteries for electric vehicles and the manufacturer of electric vehicles.

“We want to build an industrial ecosystem for lithium batteries,” Jock said, adding that it would also create jobs and generate tax revenue.