The reason Tesla abandoned its investment in Indonesia was partially unveiled during a hearing with the DPR RI. In the meeting with Commission VI DPR RI on Tuesday (September 3, 2024), Rosan Roeslani explained several factors that made Tesla seemingly disregard Indonesia.
Roeslani mentioned that it was challenging to reach an agreement between Tesla and Indonesia due to differing visions. Tesla seeks to invest in renewable energy sectors, while Indonesia still relies on non-renewable energy sources like coal.
“I happened to be directly involved in discussions with Tesla. One reason they diverted their investment was their desire for a clean environment as an EV car (electric vehicle) manufacturer,” said Rosan Roeslani.
Tesla places significant importance on renewable energy when investing, aiming to ensure that electric vehicle production has no carbon footprint. This ultimately led Tesla to redirect its investment plans to other Southeast Asian countries.
“If they enter our industrial zone but the energy is still from fossil fuels like coal, it doesn’t align with their vision. We must admit, we’re somewhat lagging in this regard,” he added.
Previously, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan also mentioned the difficulties Tesla faced in entering Indonesia. Indonesia had previously met with Tesla CEO Elon Musk in Texas, USA, in May 2022.
According to Luhut Binsar Panjaitan, Tesla is currently focusing on its business. Elon Musk does not want Tesla to face bankruptcy due to global economic uncertainties. The delay is not only affecting Indonesia but also occurring worldwide.
