Indonesia government offers geothermal power for EV manufacturing
The Indonesian government hopes to encourage EV manufacturers with the prospect of lowering their carbon footprint with the use of geothermal power.
During a meeting with the House of Representatives Budget Commission, the Indonesian Coordinating Maritime Affairs and Investment Luhut Pandjaitan revealed that they had proposed that Tesla build an electric vehicle (EV) manufacturing facility in Batang Regency, Central Java. This facility will benefit from geothermal power from the Dieng Geothermal Project operated by Geo Dipa Energi.
This proposal is part of the Indonesian government’s efforts of using renewable energy to attract foreign direct investment (FDI). The target of such efforts are multinational firms that are conscious about their carbon footprint.
Luhut has also mentioned that Tesla has shown interest in putting up a facility in the North Kalimantan Green Industrial Park, which will be powered by hydropower and solar power. No further details on any possible negotiation were reveled citing a confidentiality agreement with the company.
Indonesian President Joko Widodo and the country’s ministers are focusing on using the country’s renewable energy sector to attract investment for local development. Some ministers have even floated the idea of banning the export of renewable electricity, stating that this might redirect investment to other countries.
Source: Technode Global