Tesla Unlikely To Pursue Indonesian Plant Anytime Soon

Tesla is unlikely to establish a manufacturing plant in Indonesia anytime soon, according to minister for maritime affairs and investment Luhut Panjaitan. Following a meeting with Elon Musk last month, Tesla stated unequivocally that, due to the unfavourable global situation, the company will suspend investment in new international production sites.

According to Bloomberg, due to the world's unstable economic situation, Tesla has made it clear that it does not intend to invest in international manufacturing sites anytime soon.

“I said fine, we are doing OK if you cannot invest in Indonesia for a moment, no problem,” said Panjaitan.
Panjaitan clarified again Wednesday at the Bloomberg CEO Forum in Jakarta that Musk was concerned about the global economic outlook and oversupply in the electric vehicle industry.

Tesla has repeatedly stated that it intends to build a factory in Indonesia to produce electric vehicles and batteries. Similar claims were made as early as 2022. It is possible that the parties discussed collaboration. Elon Musk, on the other hand, has denied several reports that Indonesia and Tesla are close to a deal.

Panjaitan also stated that Musk will visit Indonesia in October to hold talks with the Indonesian government about the provision of Starlink satellite internet services in the country. The collaboration could aid in connecting Indonesia's rural areas, particularly in the east, for improved access to education and health care.