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Luhut has been called by Tesla about the factory, is the land ready?

Jakarta, CNBC IndonesiaThe surprising news about Tesla’s plan to enter Indonesia through the construction of a battery factory was welcomed by industrial estate managers. Minister of Industry Agus Gumiwang revealed that the government will encourage Tesla to enter the Batang industrial area. Even the Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan has received a call from Tesla about the plan to build a lithium battery factory.

Is the land for an investor like Tesla ready?

Operational Director of PT KIW (Persero) Ahmad Fauzie Nur said that he continues to monitor the development of investors who will enter Indonesia. One of the things that is getting the most attention at this time is the planned entry of the world’s big electric car player, Tesla by Elon Musk, which is exploring the construction of a battery factory in Indonesia.


In order to welcome it, preparations continue to be made by the consortium of PT KIW together with PT PP (Persero), PTPN IX and Perusda Batang to develop and manage the Batang Integrated Industrial Estate (KIT).

“KIT Batang is ready to accept,” said Fauzie to CNBC Indonesia, Monday (19/10).

He said the KIT Batang consortium welcomed the news very positively. Moreover, there are plans that 153 companies are already lining up to be able to build their businesses in Indonesia.

“For that, we are speeding up the construction of KIT Batang. Land preparation and support for infrastructure development in parallel are also being carried out. KIT Batang is optimistic that with the current acceleration, it will attract more investors in KIT Batang,” said Fauzie.

Land preparation in the first phase of an area of ​​450 hectares is expected to be ready in Quarter I-2021. It does not stop at the first phase, land preparation also continues for the next phase in cluster 1 (one) covering an area of ​​3,100 hectares. The total target area of ​​KIT Batang is around 4,300 Ha in total.

Minister of Industry (Menperin) Agus Gumiwang confirmed about Tesla’s plan, he said that Tesla would later be directed to build a factory in Batang. Currently the discussion process between Tesla and the government is still ongoing.

“On going discussion, the direction is there (Batang),” said Agus to CNBC Indonesia, Monday (19/10).

The news that Tesla is interested in building a battery factory in Indonesia has been growing since last month. Even the Coordinating Minister for Maritime Affairs and Investment, General TNI (Purn) Luhut Binsar Pandjaitan, claimed he had been called by Tesla.

“I want to convey again that there are many who are interested in investing in Indonesia, I just received a call from Tesla in America, they are also interested in building a lithium battery (factory) in Indonesia,” said Luhut Wednesday (9/9/2020).

[Gambas:Video CNBC]

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