Tesla receives proposal from Indonesia for electric vehicle factory with annual production capacity of 500,000

Indonesia continues to entice Tesla with a proposed electric vehicle factory with an annual production capacity of 500,000 cars.

Last Thursday, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said the government had suggested that Tesla build a factory near Batang Regency in Central Java Province where it could obtain a regular supply of electricity from renewable sources.

The Indonesian government is promoting industrial zones that provide clean energy from renewable sources to foreign companies, like Tesla, aware of their carbon footprint. Local media in Indonesia reported that the government is committed to decarbonizing its economy.

Sustainable energy transition is one of the main focuses of the G20 summit that Indonesia will host in November 2022. Jokowi met Elon Musk last month and invited the Tesla CEO to visit Indonesia in November.

The state-owned PT Geo Dipa Energi (GDE) manages geothermal facilities in Batang Regency, near the proposed Tesla factory site. The company started its first tests for a small 10 MW geothermal power plant in Dieng last year. It also owns a geothermal power plant in Patuha.

Between its Dieng and Patuha power stations, Geo Dipa Energi has an installed production capacity of 115 MW from geothermal resources. GDE wants its geothermal development to reach 400 MW in the next few years.

Luhut explained how Tesla could use GDE resources to Indonesian lawmakers during a meeting with the House Budget Committee. “We could… channel this green energy [to Tesla’s factory],” he said.

Luhut noted that Tesla has also expressed interest in the Green Industrial Park in North Kalimantan, which is powered by hydroelectric and solar power plants. The minister did not provide further details on the negotiations between Tesla and Indonesia, saying the government has signed a confidentiality agreement with the company. However, he pointed out that Indonesia wants to produce Tesla vehicles.

“While Thailand has just become an agent [of Tesla EV cars], we don’t want the same thing,” Luhut said. “We want to become a producer.

The Teslarati team would appreciate hearing from you. If you have any advice, contact me at [email protected] or through Twitter @Writer_01001101.

Tesla receives proposal from Indonesia for electric vehicle factory with annual production capacity of 500,000

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