Indonesia To Finalise Agreement For Tesla and BYD Group to Invest in Indigineos EV Production

By: Asia Business Outlook Team | Tuesday, 17 January 2023

A senior cabinet minister said that Indonesia is finalising agreements with China's BYD Group and Tesla to invest in electric vehicle (EV) production facilities in the Southeast Asian country.

To capitalise on its abundant nickel resources, Indonesia is aggressively encouraging domestic investment in batteries and EVs. It was once a major nickel ore exporter, but it has banned exports to ensure that investors have enough raw materials.

"All the biggest electric car makers in the world will invest here. BYD Group, the number one in the world, Tesla, the number two, Hyundai and so on, they are all finalising deals with Indonesia," coordinating minister Luhut Pandjaitan said in a meeting with provincial governments.

BYD Group and Tesla did not respond immediately to requests for comment.

Hyundai established a plant in Indonesia in March of last year to produce the country's first locally assembled EV.

In Indonesia, SGMW Motor Indonesia, a joint venture of SAIC Motor Corp Ltd, General Motors Co, and Wuling Motors Holdings, has built assembly facilities.