Indonesian Deal Signed!
The news out of Indonesia this week says that Tesla has finally reached a deal with the South Asian country for the purchase of their nickel products - to the tune of about $5 billion USD.
Coordinating Minister for Maritime and Investment Affairs, Luhut Pandjaitan, made a statement to CNBC Indonesia that detailed what exactly had been agreed to.
Specifically, Pandjaitan said that Tesla has signed a five year contract with some Nickel companies based in Morowali, a regency in Central Sulawesi Province. The nickel purchased is reportedly - and unsurprisingly - intended for use in Tesla’s batteries.
“We are still in constant negotiation with Tesla … but they have started buying two excellent products from Indonesia,”
And “constant negotiation” seems to be the important bit here. This deal is specifically about the products Tesla has agreed to buy, but the Indonesian government seems dead set on becoming a major electric vehicle production hub. They’re likely to keep courting Tesla and other EV producers for more business.
It’s clear the Indonesians are extremely pleased with this deal, and rightfully so. This sort of investment is a major boost to their economy, and more importantly, opens the door to further arrangements that could provide jobs and cash flow to the region.