The Indonesian government is promoting industrial estates equipped with electricity from renewable sources as it hopes to attract foreign direct investment (FDI) from multinational firms which are “carbon footprint concious”.

Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan has announced that the government had proposed that Tesla build a factory in Batang regency, Central Java, with an annual capacity of roughly 500,000 electric vehicles (EV), The Jakarta Post reported on Saturday.

The government considers the location suitable because it is near geothermal power sources estimated to be able to supply 400 megawatts (MW) of generating capacity. State-owned Geo Dipa Energi runs geothermal power facilities in the region.

“We could… channel this green energy [to Tesla’s factory],” Luhut was quoted as saying, telling lawmakers during a meeting with the House of Representatives Budget Commission. Indonesia has been increasingly protective of its new and renewable energy (EBT) sources as it is making a commitment to decarbonizing its economy, which includes making energy transition the focus of its Group of 20 leadership.

According to the report, Indonesian President Joko Widodo (Jokowi) and ministers have floated the idea of banning the export of electricity generated from EBT sources, arguing that should the government export the electricity, it would redirect investments to countries that would receive the electricity from Indonesia.

Apart from Batang, Luhut said the carmaker has also shown interest in the North Kalimantan Green Industrial Park, which has been under construction since December last year.

The industrial park is to draw power from hydropower and solar power plants to be developed near the site. “While Thailand has just become an agent [of Tesla EV cars], we do not want the same. We want to become a producer,” Luhut said.

Luhut has not been able to provide details on a possible Tesla investment, saying the government had signed a confidentiality agreement with the company.

The minister, however, said talks with satellite-based internet provider Starlink – part of Musk’s SpaceX – had progressed further. He said that a deal on Starlink had been discussed with the President on Monday, while both sides were discussing technical issues in Jakarta.

Luhut also told lawmakers that Tesla had shown interest in developing the semiconductor industry in Indonesia but did not divulge details, citing a non-disclosure agreement, according to the report.

Ford Motor Company is also planning to enter Indonesia’s EV industry, Luhut said. The minister said representatives of the US carmaker were set to visit Indonesia on June 20 and were interested in the EV industry from upstream to downstream. “The company wants to invest in [the EV industry] end-to-end.”

Indonesia aims to become an international hub for the EV industry. It is the world’s largest nickel producer and the owner of rich deposits of cobalt and bauxite and copper ores, the main components in the production of EV batteries.

South Korean firm Hyundai has begun manufacturing at its first electric car assembly plant in Cikarang, West Java, in March. The factory produces the carmaker’s newest EV, the IONIQ 5, with an annual capacity of 250,000 vehicles.

Jokowi previously said the government aims to establish an “integrated EV ecosystem” that would include such industry activities as metals mining, battery production and car assembly.

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