Indonesian leaders woo Elon Musk to build rocket facility and battery plant after Starlink launch

On Sunday (May 19), Musk touched down on the resort island of Bali to launch Starlink, with the technology expected to transform health services in Indonesia’s remote areas.

The world’s second-richest man was greeted at the airport by Indonesian Coordinating Minister of Investment Luhut Pandjaitan, who urged Musk to invest further in the country through Tesla or SpaceX during their car ride from the airport.

“I also offered him a launch pad [for SpaceX’s rockets] in [the island of] Biak. I told him that Biak was very suitable because it was on the equator so [launching] costs could be cheaper,” Luhut told reporters on Sunday.

Luhut told reporters on Monday: “We made an offer, is it possible to build an EV battery plant here, precursor cathode? And he [Musk] will consider it.”

He added that Widodo had also asked Musk to consider setting up the rocket launch pad in Biak or a centre for artificial intelligence.

On Sunday, Musk said that “it’s very likely” his companies would make more investments in Indonesia without elaborating, adding that his focus was to expand Starlink in the country for now.

“We are focusing this event on Starlink and the benefits that connectivity brings to remote islands,” he said. “I think it’s really to emphasise the importance of internet connectivity, how much of that can be a lifesaver.”

Musk’s visit to Indonesia came nearly a month after his surprise visit to China. He had postponed a visit to India – where he was initially scheduled to meet Prime Minister Narendra Modi – citing his “very heavy Tesla obligations”.

Musk’s itinerary is typically scrutinised by the international business community for signs of his overseas expansion plans amid Tesla’s intense rivalry with Chinese electric vehicle makers.