Indonesia Finalising New Incentives For EV Makers

A senior minister said on Tuesday that Indonesia is finalising a new set of incentives to attract investment from electric vehicle (EV) makers, adding that the government was still in talks with big companies like Tesla and BYD.

Coordinating Minister of Maritime Affairs and Natural Resources Luhut Pandjaitan said at a nickel industry conference hosted by CNBC Indonesia that the incentives will be compared to those offered by regional rivals Thailand and Vietnam, but he did not provide details, according to Reuters.

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Indonesia, the largest economy in Southeast Asia, has attempted to entice electric vehicle manufacturers to invest in the country, luring them with its rich nickel reserves - the world's largest - that can be converted into electric vehicle batteries.

Some automakers, such as China's BYD, have chosen to invest in Thailand, the region's automotive hub.

“Tomorrow we will finalize the incentives we will give for any investment in electric vehicles in Indonesia,” Luhut said, adding that they are awaiting approval from President Joko Widodo.

Luhut stated that he will meet with BYD executives in the Chinese city of Chengdu on Thursday, and that he will also meet with Tesla Chief Executive Elon Musk in California on August 3.

For years, Indonesia has courted Tesla, hoping to host an Asian production hub for the US electric vehicle manufacturer. Tesla is in talks with Indian officials about establishing an electric vehicle manufacturing plant there.