Indonesia points to the largest power battery producer
It is reported that the Indonesian government's trip is part of a major plan for the country. The plan simplifies the cumbersome process for Indonesia's next transnational business process and will cover a package of projects including employment in the future. Widodo revealed that the huge team sent by the government not only plans to travel to the United States, but Japan is also planning its next trip. In order to promote the New Deal, the ruling party of the country will announce more details of cooperation and the latest progress of negotiations. Prior to this, Widodo congratulated Biden on his election as the next President of the United States. As the supreme leader of Indonesia, he hoped that Biden's government would promote 'world stability and peace.' 'This trip is very important because we have a great plan to make Indonesia the largest producer of lithium batteries, and we have the world's largest reserves of nickel mines.' Widodo told Reuters, Indonesia Maritime Affairs and Investment Coordination Minister Luhut Pandjaitan will serve as the leader to lead government officials to meet with Tesla executives. In a previous interview with Pandjaitan, he revealed that he would also hold meetings with the World Bank and financial executives in the United States. Discuss comprehensive law and Indonesia's environmental projects. So far, he declined to comment specifically on the planned meeting with Tesla, but said that this is a very good opportunity because manufacturers such as Tesla hope to invest in nickel processing in Indonesia to cut costs. Tesla CEO Elon Musk also stated that he can agree to a long-term high-input contract, but the premise is that nickel mining must be efficient and environmentally friendly. Indonesia’s new business policy reforms amended about 79 existing laws, but they have also been criticized for relaxing environmental standards. Pangatan once stated in a public speech that Indonesia can make the battery supply chain more environmentally friendly by providing renewable energy to smelters in the next 7-8 years. If all goes well, by 2030, these smelters will be able to sell more environmentally friendly electric vehicle drive batteries in the European market. Widodo also stated that the new reform law is crucial to reducing red tape, stimulating investment and improving labor market competitiveness. Although labor unions, students, and environmentalists have protested the bill, at least in the business dimension, Indonesia’s latest changes have received a positive response from the market. It has always been difficult for Indonesia to attract foreign investment at the same high speed as its neighboring countries. The new law will be one of the main catalysts for economic growth next year. Due to the impact of the coronavirus pandemic, this year's largest economy in Southeast Asia suffered its first recession in more than 20 years, and millions of people lost their jobs. Nevertheless, the Indonesian government still claims to the public that they have passed an important turning point and are currently in a more positive and encouraging trend in all aspects. With the help of mass vaccination, GDP is expected to grow next year. As 2020 is coming to an end, Indonesia's new car sales are still sluggish. After August, sales in most countries in Southeast Asia have gradually returned to the level before the COVID-19 pandemic, but sales in Indonesia are still less than half of the same period last year. Another obstacle is that, as the largest economy in Southeast Asia, Indonesia this year rejected the proposal to reduce the luxury tax on new cars to 0%, and instead provided investment incentives for automakers. Car sales have always been a key indicator of local consumer spending, accounting for more than half of Indonesia's gross domestic product (GDP).