Indonesia is vigorously courting major electric vehicle (EV) manufacturers, including Tesla and Build Your Dreams (BYD), by offering enticing incentives to boost investments in the burgeoning industry, reports The Jakarta Post. This move comes in the wake of Tesla’s recent launch in Malaysia, indicating a growing interest in Southeast Asia’s EV market.
According to Luhut Pandjaitan, the Indonesian Minister of Maritime Affairs and Natural Resources, the intended incentives will closely mirror those put forth by regional competitors like Thailand and Vietnam. The minister was speaking at the nickel industry conference organised by CNBC Indonesia, indicating that the proposal is in its final stages and awaiting the green light from President Joko Widodo.
Pandjaitan is scheduled to meet BYD executives in Chengdu, China, this week. On August 3, he will be convening with Elon Musk, the CEO of Tesla, in California, United States. These meetings highlight Indonesia’s aggressive pursuit of Tesla in hopes of establishing an Asian production hub, using its ample nickel reserves as a lure.
Tesla’s decision to extend its operations to Malaysia is a response to the Battery Electric Vehicle (BEV) Global Leaders initiative introduced by the Ministry of Investment, Trade and Industry (MITI). The Malaysian Investment Development Authority (MIDA) confirms that Tesla’s activities in Malaysia will involve importing its Model 3 and Model Y, with more models lined up for future releases.
In addition, Tesla plans to invest significantly in Malaysia by constructing a broad network of fast-charging and regular-charging stations across strategic locations. Malaysian consumers can anticipate an interactive experience center where they can learn more about the advantages of electric mobility and receive personalised guidance from Tesla sales representatives.