A senior Indonesian minister said on Tuesday that they have requested support from Chinese automaker Geely Automotive Holdings to produce domestic electric vehicles by 2025 or 2026, and that talks are progressing positively.
The proposal would also be accompanied by Indonesia supplying nickel ore to produce electric vehicle (EV) batteries, but the research should be done by Indonesia, he said.
Indonesia is trying to entice electric vehicle manufacturers to invest in the country by offering access to rich reserves of nickel, a key component of electric vehicle batteries.
On Monday, Vietnamese electric vehicle company VinFast said it plans to invest about US$1.2 billion (RM5.6 billion) in Indonesia in the long term, including a plant planned to start production in 2026.
Last month, Southeast Asia's largest economy accepted investment commitments from China's Hozon New Energy Automobile and Japan's Mitsubishi Motors into electric vehicle production.
However, the government's efforts to attract investment from the world's two largest electric vehicle manufacturers, American Tesla and China's BYD Group, have not yet materialized.