There is still hope, the head of BKPM says negotiations with Tesla are still going on

JAKARTA, KOMPAS.com – Head of the Investment Coordinating Board ( BKPM) Bahlil Lahadalia confirmed the government’s negotiations with Tesla Inc., an electric car manufacturer from the United States, is still running.

This follows news that the company owned by Elon Musk will build an electric car factory in India, which is marked by the signing of an agreement by both parties.

The news also made many parties question the sustainability of the Indonesian government’s negotiations to invite Tesla to invest in the country.

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“I want to say, this is still a negotiation, no one will leave, if you leave, you just leave, it’s still a process,” said Bahlil in a virtual press conference, Wednesday (24/2/2021).

He explained, basically, Indonesia’s communication with Tesla from the beginning was carried out by the Coordinating Minister for Maritime Affairs and Investation (Marves) Luhut Binsar Pandjaitan. So, his party will communicate with Luhut to find out more detailed information related to the plan investation Tesla.

“We are at the end. So for that I will try to communicate with the Coordinating Minister for the latest information,” he said.

According to Bahlil, the ups and downs in the investment negotiation stage are common. Even so, he emphasized that the government will continue to encourage negotiations with Tesla so that it can produce good results for Indonesia.

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“So if people are in business negotiations, those deals usually go up and down. The world is not over yet, don’t be pessimistic, this (negotiation) thing is still going on, “he said.

He gave an example, the negotiation tug-of-war also occurred in the investment of LG Energy Solutition Ltd. Even negotiations took place over a period of more than a year until finally LG decided to build an electric vehicle battery industry with an investment of up to 9.8 billion US dollars.

Bahlil is also optimistic that Tesla and other foreign investment will be interested in investing in Indonesia, because it is supported by the implementation of the Job Creation Law and its derivative regulations. This regulation is considered to support the investment climate and ease of doing business in the country.

“With this Job Creation Law, it will create a better climate for our business world and then build positive perceptions related to the national economy,” he concluded.

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