This Week’s Headlines (28 Jan - 3 Feb 2023)
03 Feb 2023
President Jokowi "confident" Tesla will invest in Indonesia
Indonesian President Joko Widodo is confident Tesla Inc. will finalize a deal to invest in a
Southeast Asia's largest economy has been wooing Tesla to invest in battery and car
The president, widely known as Jokowi, has held talks with Tesla Chief Executive Elon Musk twice,
"I said to him that if you invest in Indonesia, I will give the concession of nickel," Jokowi said,
Other incentives include tax breaks and a subsidy scheme on EV purchases to build a market for
The president said he was "confident" Indonesia had the edge over other countries Tesla might be
Jokowi said it was up to Tesla to take up the offer to mine nickel, underlining that Indonesia is open
Tesla did not immediately respond to a request for comment.
Tesla is looking for an additional manufacturing hub. The company currently manufactures EVs in
In addition to Indonesia, South Korea, Canada and Mexico have been vying for Tesla to invest in
Analysts have said Mexico could have an edge to win the Tesla investment because of the
POSSIBLE FIRST FOR ASIA
If Tesla were to invest in battery production in Indonesia, it would be its first facility of that kind in
Jokowi banned the export of nickel ore in 2020 to encourage investors to build a vertically
The ban has brought in big investments in nickel smelting, mostly from China, but has also been
The WTO last year ruled in the EU’s favor but Indonesia is appealing.
Indonesia has also seen rising interest in investment in EV or battery production, with South
Indonesian officials last year said Tesla has signed contracts worth about $5 billion to procure
Jokowi to declare ban on raw copper exports this year
President Joko Widodo (Jokowi) stated that he would shortly announce a policy to halt the exports
"I already informed in December that bauxite export would be stopped in June 2023. I will soon
He explained that the decision to stop copper exports was based on the results of his review of
"The progress in smelter construction in Gresik and NTB had reached more than 50 percent.
The president also reminded that Indonesia is now the majority owner of PT Freeport Indonesia's
"Do not think that Freeport still belongs to the United States. We already have the majority
Jokowi had earlier imposed a nickel ore export ban in January 2020 and spoke at length on the
According to the head of state, downstreaming has created a significant jump in value from the
"Imagine the value increased from Rp17 trillion to Rp405 trillion. What an enormous added value,"
This policy was then sued by the European Union at the World Trade Organization (WTO) and
However, Jokowi emphasized that the defeat was not the end, as Indonesia could still submit an
"If we lose after the appeal, we must keep going because the downstreaming industry and the
The president also entrusted the banking world to play an active role in overseeing the mining
Coordinating Minister for Economic Affairs Airlangga Hartarto, Coordinating Minister for Maritime
UK to provide $1.25b in MRT as it dubs RI ‘powerhouse’ economy
The United Kingdom government will make available US$1.25 billion for the development of the
UK minister for exports, Andrew Bowie, told The Jakarta Post on Thursday that these eight
“[Crossrail International and Mott Macdonald] delivered the Elizabeth Line, which has transformed
The $1.25 billion in export credit guarantees from UK Export Finance was agreed upon in
Bowie declined to divulge what the rest of the funds might be used for, explaining that it was up to
“It’s up to the projects in Indonesia to make it known to us that [a specific project] is going ahead,
The minister added that the UK government saw Indonesia and the Southeast Asian region as “the
He emphasized that Indonesia’s economy was “the real powerhouse” and that London’s “overseas
“The UK wants to be a part of [Indonesia’s economic growth], and we are not where we should be.
UK companies had expressed interest in the LRT project as well, said Bowie.
Source: The Jakarta Post