EV makers become attractive investment source as Indonesia finalises a set of incentives
Business
Saudi Arabia had inked a $5.6bn deal with China’s Human Horizons
JAKARTA (Web Desk) – Indonesia joins the list of nations trying to attract electric vehicles (EVs) manufacturers, as Reuters quoted a senior minister on Tuesday said it was finalising a new set of incentives to attract investment and in talks with major companies like Tesla and BYD.
One of the main reasons behind this trend is the focus on climate change while these countries do not want to be left behind in the technological transformation.
Last month, Saudi Arabia’s Ministry of Investment signed a $5.6 billion deal with Chinese electric car maker Human Horizons to collaborate on the development, manufacture and sale of vehicles, the Saudi state news agency said in a statement.
Read more: Saudi Arabia signs $5.6bn deal with Chinese EV company
Speaking at a nickel industry conference hosted by CNBC Indonesia, Coordinating Minister of Maritime Affairs and Natural Resources Luhut Pandjaitan said the incentives would be benchmarked against those offered by regional rivals Thailand and Vietnam, but did not provide details.
Indonesia, the largest economy in Southeast Asia, has been trying to attract EV makers to invest in the country, enticing them with its rich nickel reserves - the world's biggest - which can be processed into EV batteries.
However, some automakers like China's BYD have instead chosen to invest in Thailand, the region's automotive hub.
"Tomorrow we are going to finalise incentives that we are going to give to any EV investment in Indonesia," Luhut said, adding they were awaiting President Joko Widodo's approval.
Luhut said he will meet BYD executives in China's city of Chengdu on Thursday, and a meeting is also scheduled on August 3 with Tesla's chief executive Elon Musk in California, United States.
Indonesia has been wooing Tesla for years, hoping to host an Asian production hub for the American EV maker. Tesla has been in talks with Indian officials for an investment in an EV factory there.
