Indonesia must become the largest producer of lithium-ion batteries in the world, that is the plan that President Joko Widodo has in mind for his country. A new law should make it easier for foreign companies to do business in Indonesia. The president immediately aims high, because he wants to snare Tesla, among other things.
President Widodo is sending teams to America and Japan to inform companies about the new opportunities in Indonesia, he confirms to the opposite Reuters. The ‘Omnibus’ law has made it easier for foreign companies to set up a business in the country. The goal is to increase employment, but Widodo also has another ambitious plan. “We want to make Indonesia the largest producer of lithium-ion batteries in the world,” he says. The president also emphasizes that Indonesia has large reserves of nickel, an important raw material for producing the batteries.
The team that will be sent to America will speak with Tesla managers, among others. Elon Musk is interested and wants to enter into a ‘large contract for a long time’, but does make it a condition that the nickel is extracted from the ground in an efficient and environmentally friendly manner. The ‘Omnibus’ law with which the president of Indonesia shows off has attracted much criticism from trade unions and environmental activists, among others. This is because environmental regulations have been relaxed. Incidentally, Indonesia is far from being there when it comes to the environment, as the country expects to be able to make the battery production chain fully sustainable only by 2030.
Indonesia is not the only Asian country that wants to start producing batteries on a large scale. India is investing nearly € 4 million to attract manufacturers of ‘advanced batteries’ to the country. Tesla wants to make a step towards India next year by selling cars there. Musk’s side note is that the country’s hefty import duties will probably make cars unsaleable, regardless of the fact that the average Indian is not well off.