Tesla IncTSLA, Chinese automaker BYD Co, LtdBYDDFBYDDY, and South Korea’s Hyundai Motor Co, LtdHYMTF finalized deals to invest in Indonesia’s electric-vehicle industry.
“All the top global carmakers are coming to us,” said Luhut Panjaitan, coordinating minister for maritime affairs and investment, in a meeting with local government leaders, Bloomberg reports.
Global EV and battery producers plan billions of dollars of investment as President Joko Widodo offered potential investors access to Indonesia’s reserves of key battery metals. The investors ranged from Contemporary Amperex Technology Co Ltd’s $6 billion mining-to-batteries complex to Hyundai’s new EV plant.
Indonesia expects $30 billion of investments through 2026 to develop its EV battery ecosystem as per Panjaitan’s latest presentation.
The government eyed up to 80 million rupiah ($5,271) of subsidy for each EV purchase to boost adoption.
The cabinet has reached a decision on EV matters and will make an announcement soon, Panjaitan said.
Indonesia aggressively promoted investment into batteries and EVs at home to exploit its rich nickel resources, Reuters reports.
Once a major nickel ore exporter, Indonesia banned exports to leave back enough raw materials for investors.
Tesla neared sealing an initial deal to set up a factory in Indonesia, marking Tesla’s third international factory, joining facilities in Shanghai and a plant near Berlin.
Indonesia is a tough market for global automakers, given that affordable cars make up most sales.
Price Action: TSLA shares traded higher by 0.47% at $122.98 in the premarket on the last check Tuesday.
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