Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Mr. Luhut Pandjaitan, recently disclosed that Tesla CEO Elon Musk conveyed that the electric vehicle (EV) giant does not intend to invest in Indonesia in the near future.
In a meeting that took place last month between Mr. Pandjaitan and Mr. Musk, lasting two hours, the Indonesian official assured that Indonesia respects Tesla’s decision not to invest in the country at this time. “I said that’s okay. If Tesla is not ready to invest in Indonesia at this time, that’s fine,” stated Mr. Pandjaitan.
During the Bloomberg Forum, Mr. Pandjaitan elaborated that Elon Musk expressed concerns about the global economic outlook and specifically cited fears of an oversupply situation in the automotive industry. This hesitation comes as Tesla recently slashed prices and introduced a new Model 3 variant to stimulate sales. In the United States, Tesla also reduced the starting price of the Model X to $79,990, marking a significant drop from its earlier price this year.
Earlier this year, Tesla had entered into preliminary negotiations for the establishment of a Tesla factory in Indonesia. However, the recent decision to postpone investment plans highlights the EV manufacturer’s cautious approach amid changing market dynamics and global economic uncertainties.