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Indonesia Could Become Tesla’s Next Big Production Target

Tesla’s next target looks like Indonesia. The Southeast Asian country has focused all eyes after the statements of Elon Musk and the country’s top dignitary, Joko Widodo. After a brief meeting held a few days ago in Texas, both parties could have agreed to build a new Gigafactory in Indonesia. An electric vehicle production plant that would be supported by a large battery production facility. Do not forget that Indonesia is one of the main players in the world of mining for the manufacture of batteries for electric cars.

Currently, Indonesia has the largest nickel deposits in the world. The small island country has become the largest producer of nickel, and for this reason, in the eyes of companies and investors, it has been well positioned for the future. With the intention of underpinning that recognition, the high representatives of Indonesia know the importance of having the presence of the biggest player in the electric car market, Tesla. After several contacts and approaches, the positions seem to be in tune, which could cause a definitive announcement shortly.

As reported benar news, the meeting between Musk and Widodo held a few days ago, was most fruitful. The president of Indonesia already takes the deal for granted, although there is still no official confirmation from Tesla, so there is no guarantee at all. Nevertheless, Elon Musk did have a certain charm with respect to the president and the country, assuring that he was delighted by the enthusiasm of Indonesia and that they were looking at possible collaboration on “many, many fronts.”

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Elon Musk’s approach has sparked rumors of a new Gigafactory in Indonesia.

That has been more than enough for a whole wave of rumors to have been unleashed. The most promising plans point to the construction of a new Gigafactory in the province of Central Java. The production center would also have its own facility for the production of batteries with which Tesla would take advantage of the proximity to the precious nickel. We repeat that at the moment there is no official confirmation, although the circle close to President Widodo is very positive about it.

In recent years, Indonesia has become more attractive to investors and manufacturers. The country wants 20% of its car park to be 100% electric by 2025, something that does not seem very real considering that the vast majority of cars circulating in the country are old diesel and gasoline vehicles. Nonetheless, companies like Hyundai or LG Energy Solution already have plans to establish themselves in the country. The Koreans have started producing the Ioniq 5, and the Chinese are planning large investments for production.

The possibility of Tesla entering Indonesia is nothing new. A few days ago the news was that Tesla could open its own nickel extraction and treatment factory in the country. All this coincides with India’s rejection of Tesla’s arrival. An agreement that finally has not come to fruition since the dignitaries of the country refused to accept the proposal of those from Austin for the reduction of taxes with the condition of opening a center in the country. In spite of everything, Tesla has a great attraction for the countries, and if one does not accept, surely another will see it with good eyes.

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