Tesla in talks with Indonesia on an undisclosed matter

Jakarta

TeslaTesla Inc and Indonesia's government are in early talks about a potential investment, a Reuters report said.

Indonesia, a major producer of nickel, said it is keen to develop a full supply chain for nickel at home, especially for extracting battery chemicals, making batteries, and eventually building EVs.

Ayodhia Kalake, a senior official at the Coordinating Ministry for Maritime and Investment, said Tesla had reached out to the government informally about a possible venture, but he did not specify what it had in mind.

"It was still an early discussion and was not detailed yet," Ayodhia said in a statement on Monday.

"We need further discussion with Tesla," he said, adding that Indonesia has a number of incentives for investment in EVs.

Tesla did not immediately respond to a Reuters email seeking confirmation.

Indonesia last month said it had secured a deal to build a lithium battery plant in the country with South Korean LG Chem Ltd and China's Contemporary Amperex Technology Ltd