Malaysia To Destroy Elon Reeve Musk Mood’s to Invest in Indonesia

San Francisco 1.11pm

It’s no secret that there is “heated” competition between Indonesia - Malaysia to lure Elon Reeve Musk to build a gigafactory, although there is a good relationship between President of Indonesia Joko Widodo and Malaysia Prime Minister Dato Seri Haji Anwar bin Ibrahim. Both countries even gave a clue - implicit signal to create a new (together) currency and cooperation on the CPO issue, especially (prepare) for a legal battle with the European Union. The EU already banned CPO from Indonesia and Malaysia. 

Thailand is already losing a grip because of political instability. Vietnam is also losing a grip because it's too late on EV development, especially because of the domestic financial crisis. Vietnam was canceled to be host of Asian Games 2018 due to lack of financial problems, and then Jakarta - Palembang (Indonesia) to be host.

Singapore is a small (size of) country, not a match with Gigafactory. Although the cost of parking in central Singapore isn't as high as cities like London, New York and Tokyo, leaving a car in Orchard and the Central Business District (CBD) can be quite a strain on your finances. Parking around Orchard from 2:00pm to 4:00pm on Mondays to Fridays is going to cost you US$6 per hour, amounting to US$12.. Filipina or Philippines very low penetration of EV. The race is just Malaysia and Indonesia in Southeast Asia, or if you count the entire Asia, the race is just Saudi, Malaysia, and Indonesia. TATA (India) Owner indicating “whatever cost” to make sure that Tesla never ever builds a gigafactory in India, because it is very dangerous for TATA market. 4 Days ago, revealed that MbS talked with Elon Reeve Musk about a potential new Gigafactory in Saudi.

Indonesia has several gigantic-area Industrial Parks, one of them is Kalimantan Industrial Park Indonesia (KIPI) in Bulungan District, North Kalimantan, just hundred kilometers from new capital city IKN NUSANTARA. The aptly named “Gigafactory Texas'' opened in April 2022 and has over 10 million square feet of floor space (around 100 football fields), making it the second-largest building by volume in the world. KIPI with a total area of 30 thousand hectares, is expected to be the largest industrial area in the world.

The industrial area will use new and renewable energy as the main energy source, two of which are hydropower and solar panels. In addition, electric power will be supported using gas fuel.

Although gargantuan (predicted) US$ 220 billion to develop KIPI and IKN NUSANTARA, President Joko Widodo set a long term goal: reach every investor across the world. Including Elon Reeve Musk.

After read very carefully stunning investigation by TEMPO Indonesia (5th biggest publishing media in Indonesia), published Sunday early morning Jakarta time (on newest magazine edition), and try to develop separate research in last 20 hours, (author) assuming that a “gambling” new batch of merger talk between AXIATA Group Berhad or (in Indonesia) PT XL Axiata Tbk with Sinar Mas Group / Smartfren, maybe very harm or very risk to make Elon Reeve Musk losing a mood for / to invest in Indonesia and - then, Indonesia maybe losing gigantic “double-digit” billion dollar (potential) investment by Elon Reeve Musk, both Tesla or Starlink. 

The problem, or complicated, that AXIATA Group Berhad owned by Malaysia government via Khazanah Nasional Berhad (36.43% shares of AXIATA Group), is very “grey area”, whether Malaysia Government (maybe not directly decision by Prime Minister Dato Seri Haji Anwar bin Ibrahim) to create a “confused, overwhelmed” situation with intention to disrupt talk between Indonesia and Elon Reeve Musk to invest in Indonesia.

For more context: Indonesia just sent Foreign Minister Retno Lestari Priansari Marsudi to the UN General Assembly this year. In the last 2 weeks, President Jokowi was very busy inaugurating the High-Speed train (1st ever in ASEAN) and starting the development project of 2 (two) 5-stars Hotels in new capital city IKN NUSANTARA. Contrary, Malaysia PM Dato Seri Haji Anwar bin Ibrahim himself is going to NYC to the UN General Assembly, although not to meet Elon Musk. 7 Hours ago, CEO AMCHAM Malaysia Siobhan Das Bachran even mentioned Amazon Web Services (AWS) as the first company in her LinkedIn. Amazon Web Services (AWS) plans to invest US$6 billion in Malaysia by 2037, making it the largest international technology investment in the country to date. As part of the investment, it will be launching an infrastructure region in Malaysia.

The new AWS region will enable customers who prefer to keep their data in Malaysia to do so securely. It will also increase data transfer speed and meet the growing demand for cloud services across Southeast Asia.

TEMPO investigation also suggested or revealed that another “ALL-IN” minister in Indonesia alongside Pak or Mister (General retired) Luhut Binsar Pandjaitan: Pak or Mister Health Minister Budi Gunadi Sadikin.

Due to corruption in another ministry, Telco Ministry, from January - August 2023, Pak Budi, Indonesia’s Health Minister, took over sensitive - strategic talk about telco or tech issues (Starlink satellite) with Elon Reeve Musk (alongside Pak Luhut Binsar Pandjaitan), although for detail aspect between Indonesia side and Elon side, meeting already held by Directorate Generale Telco Ministry and Elon’s staff (especially Madame Rebecca Slick Hunter, Senior Manager-Government Affairs of SpaceX. 

*Tempo Magazine - Indonesia Language

*Tempo Magazine - English Language. One of high-rank SpaceX, Rebecca Slick Hunter, already met Directorate Generale Wayan Toni Supriyanto

*(General retired) Minister Luhut Binsar Pandjaitan - Elon Reeve Musk

*(General retired) Minister Luhut Binsar Pandjaitan - Elon Reeve Musk

*Minister Budi Gunadi Sadikin - Elon Reeve Musk

*Minister Budi Gunadi Sadikin - VP Kamala Devi Harris

For specific SpaceX, although it is very hard to imagine that Elon Reeve Musk is investing in a new spaceport outside US soil, actually Indonesia has an advantage. Due to its equatorial positioning, authorities believe Biak Papua is the site to make an ideal spot to build a spaceport for launches, as the rocket can take advantage of the Earth’s rotational speeds. Internationally verified studies have identified that Biak’s equatorial positioning places it in the top 10 most efficient rocket launch latitudes in the world. Biak is just one degree below the equator, which makes it ideal for launching spacecraft as less fuel is needed to reach orbit (and Biak) also has several features that make it attractive for anyone with space ambitions, it is flush with nickel and copper - both used to manufacture rockets and EV.

If the global economy is better next year, Tesla may continue plans in Mexico (gigafactory) and even in Indonesia (also gigafactory, not only battery), and maybe another new gigafactory in Saudi. Indonesia could become Elon Musk's perfect choice for Tesla's manufacturing unit in Asia as the country has the largest nickel reserves, a key element for battery production.

It's also believed that Elon Reeve Musk would visit Indonesia in a couple of months. He has been looking for a suitable place in Asia for manufacturing Tesla cars. The potential investment from Tesla is seen as a significant opportunity for Indonesia, which has been actively seeking to attract foreign investments in the EV industry. Tesla’s interest in the country is particularly exciting due to Indonesia’s abundant reserves of nickel, a key ingredient in lithium-ion batteries. By building a battery factory in Indonesia, Tesla would have access to a local supply of nickel, reducing reliance on imports and potentially driving down production costs.

First ever Elon Reeve Musk - Indonesia government cooperation is ventilator supply for combating coronavirus (April 2020), the funniest thing, connected by Mr Budi Gunadi Sadikin. Not surprised if the Indonesian Government works with Elon Musk's Starlink and offers satellite Internet in ASEAN and works with others on 6G technology, no longer 5G technology, to accelerate and or “cut the gap” with 6G leaders such as South Korea. Especially after months of gigantic corruption in Indonesia by former Telco Minister Kementerian Komunikasi dan Informatika Republik Indonesia Johny Plate, worth IDR 9 Trillion (around US$590 million), corruption 4G (not 5G, but FOUR Generation, older generation) wireless base station project meant to fast-track high-speed telecommunication service throughout the country. 

With Malaysia already getting investment by Amazon Web Services (AWS), actually Indonesia has a potential place for SpaceX / Starlink, so Starlink doesn't want to put money on the market which (already) gigantic player such as Malaysia with AWS.

Rather than being hampered by the corruption of the 4G - OLDER Generation, it is very possible for the Indonesian government to accelerate the achievement of 6G, no longer 5G, with Starlink. Moreover, the area of Indonesia is very large, extending 5,100 km long span. If Starlink is very effective in Ukraine (war), let alone in Indonesia. By providing satellite-based internet coverage, Starlink has the potential to revolutionize internet access in countries like Indonesia, where a significant portion of the population still lacks reliable connectivity, could be a game-changer where internet penetration remains relatively low especially in East Indonesia.

Budi Gunadi is Indonesia’s Health Minister. Indonesia (newest data 2023) has around hundred-thousand doctors in secluded areas, also have 10,283 puskesmas (community health centers) to focus on preventing disease and promoting health to help reduce the burden on the country's deficit-stricken National Health Insurance (JKN) program.

With a gigantic number of buildings (10,283 puskesmas) and doctors especially in secluded area maybe better communication access between Jakarta - secluded areas can improve public health in the entire Indonesia). Currently (Indonesia) is very interested in using and or optimize Starlink for rural - secluded areas.  Pak Budi Gunadi Sadikin met with Elon Musk to explore cooperation in providing internet access at health centers or Puskesmas located in underdeveloped, frontier and outermost areas. 

If agreed, Starlink, a satellite network company part of Elon's SpaceX, will provide internet to health centers in the 3T area, and a lot of Puskesmas will be equipped with Starlink devices. With a population of some 277 million people across the vast archipelago, puskesmas had been the backbone of the national healthcare system. The implementation of Starlink would provide numerous benefits, such as improved internet access for healthcare centers in remote areas, enabling real-time health facility data reporting. It would also enhance educational opportunities for students in underserved regions, promoting equal and equitable access to education and health issues throughout the country.

Arguably 40% of Indonesia's territory, mostly in the East side, has very poor communication infrastructure, and very poor health infrastructure. Look again at the map, there are few “very small” blue circles in the East side of Indonesia if compared with the many “big” blue circles in the West side.

STARLINK (a division of SpaceX) presence in Indonesia make competition tighter, maybe (STARLINK is a) game changer, so Axiata Group Berhad re-run merger strategy in Indonesia with SinarMas - SMARTFREN PT Smartfren Telecom Tbk - Smartfren for Business. Indonesia business of AXIATA, PT. XL Axiata Tbk CEO Ibu Dian Siswarini, admits that STARLINK may be a game changer for the telco business in Indonesia.

Budi Gunadi not only as a minister but also former CEO PT Bank Mandiri (Persero) Tbk., the 8th biggest companies in ASEAN, very well-known for a demand of telecommunication infrastructure for financial literacy. Pak Budi to be CEO Mandiri between April 2nd, 2013 - March 21st 2016. In December 2012 - Januari 2013, Bank Mandiri just had around 11,454 - 11,803 ATM (automated teller machine) and 2,583 permanent building offices including micro outlets.

In December 2016, months after Pak Budi left Bank Mandiri as CEO, Bank Mandiri already had 17,461 ATM and 4,469 building offices including micro outlets. 

The stunning number of (additional) ATMs and offices under Pak Budi administration as CEO Mandiri, parallel with demand to build gigantic technology or infrastructure within Bank Mandiri, across the 5,100 km long span of Indonesia. This is the factor (currently) no as Health Minister, Pak Budi doing “whatever cost” to improve health infrastructure in Indonesia. 

But fear with sophisticated Starlink, a division of SpaceX, makes Telco companies in ASEAN aware. Singtel Singapore has already set a business cooperation with Starlink, with KVH/Starlink Companion Package. Royal Thai Government sign cooperation with Starlink from 2021. Gigantic telco business, Axiata Group Berhad / Celcom Berhad, re-run merger talks with Sinar Mas Group - PT Smartfren Telecom Tbk. CEO AXIATA - Indonesia Business Unit PT. XL Axiata Tbk Ibu Dian Siswarini aware that Starlink’s Elon Musk in Indonesia Telco Market or Telco Business make competition very tight.

But according to a stunning Tempo investigation, actually Sinar Mas / SMARTFREN Telecom already has a cooperation with Starlink. Starlink has not already set up cooperation with Indonesia government (TELKOMSAT, by Telkomsel).

*Tempo Magazine - Indonesia Language. Explaining Starlink - (Indonesia company) Smartfren cooperation. AXIATA Group Berhad accused Starlink for destroying the ASEAN Telco market, but, more complicated, AXIATA itself tried to merge the business with Smartfren. Smartfren is SINAR MAS subsidiary.

*Tempo Magazine - English Language. Explaining Starlink - (Indonesia company) Smartfren cooperation. AXIATA Group Berhad accused Starlink for destroying the ASEAN Telco market, but, more complicated, AXIATA itself tried to merge the business with Smartfren. Smartfren is SINAR MAS subsidiary.

This is making some confused because both AXIATA Group (in Kuala Lumpur Malaysia) and XL AXIATA (in Jakarta) gave a statement indicating “worried” about Starlink presence in ASEAN and especially in Indonesia. But the fact (revealed by TEMPO) that Smartfren actually has (in months) cooperation with STARLINK, and AXIATA now set (re)talk about merger with SINARMAS / Smartfren, will be confused not only Indonesia side (especially Telkomsel) but also Starlink team. If AXIATA Group Berhad and especially XL AXIATA (Indonesia) worried about Starlink, why did AXIATA try to merge with Smartfren Telecom, an Indonesia private company which actually already has a contract-cooperation with Starlink. 

The more complicated issue is AXIATA Group Berhad is not 100% private companies, again, 36.43% shares of AXIATA Group Berhad owned by Malaysia SWF (Sovereign Wealth Fund) Khazanah Nasional Berhad. With a sensitive-heated race between Indonesia and Malaysia on the “Tesla side” (lure Elon Musk to invest), it is unclear that for the “Telco side” Malaysia may try to make an overwhelmed situation between Indonesia and SpaceX. 

In other issues, the negotiation between Starlink and Indonesia Telco Ministry (not Health Ministry) is facing some obstacles. With successfully “transfer knowledge” on mining (especially nickel) between Indonesia and China (repeatedly proud about successfully transfer knowledge explaining by Minister [General retired] Luhut Binsar Pandjaitan), the lookalike Indonesia government asked opening vacancies for Indonesian citizens if Starlink was willing to have a bigger presence on the Telco market in Indonesia. 

*Tempo Magazine - English Language. One of high-rank SpaceX, Rebecca Slick Hunter, already met Directorate Generale Wayan Toni Supriyanto

Around 1.30pm NYC time (Sunday, Sept 24), we’re 1,085 vacancies in SpaceX but no one for or in (location) Jakarta or Kuala Lumpur. Starlink revenues are estimated at US$222M in 2021/US$1.4B in 2022. Pak (Minister) Luhut already meet with Elon Musk too.

Post vacancies

Uniquely - coincidentally, 21 hours ago, around 7pm (Saturday, Sept 23) in Arlington or 6am Jakarta time (Sunday, Sept 24) –same hour TEMPO Indonesia published new investigation, Rebecca Slick Hunter (already meet with Indonesia Telco Ministry, according TEMPO) reposted vacancies about compliance or legal (*although this is just for US citizens and not remote). The original vacancies were actually created/posted by Compliance Analyst SpaceX Cassandra Heyne from 4 days ago (around Tuesday or Wednesday).

Although not indicating that this (new) “LEGAL” is vacant because of some obstacle between Indonesia - SpaceX / Starlink, the additional “LEGAL” team will strengthen SpaceX / Starlink to negotiate globally, including Indonesia. Again, around 1.30pm NYC time (Sunday, Sept 24), we’re 1,085 vacancies in SpaceX but no one for or in (location) Jakarta or Kuala Lumpur.

Last August, alongside a meeting between Elon Musk and Pak/Mr Budi Gunadi Sadikin, there was another meeting between Pak Luhut Binsar Pandjaitan and Elon Musk. Luhut mentioned that he recently had a meeting with Tesla CEO Elon Musk to discuss Indonesia’s economic development and the current condition of Tesla Inc. The main focus of the investment appears to be on the manufacturing of materials for lithium batteries, which are crucial components of electric vehicles (EVs).

*(General retired) Minister Luhut Binsar Pandjaitan - Elon Reeve Musk

Demand destruction due to high prices and triumph of EVs will make it hard to sustain the high prices though. If the price cap on Russian oil was successfully lowered and enforced, that would change the incentives for Russia from a high prices approach to a high volumes approach which would balance the market on a lower level.

While it seems that Tesla is not considering a vehicle production facility in Indonesia at this time because Tesla’s plan in Mexico (build Gigafactory) is postponed, plans for a battery materials plant are underway. Meanwhile, Tesla recently filed to implement a US$700 million expansion at Giga Austin. If lithium is the limiting factor, Tesla may—at times—prioritize nickel-based and/or non-iron chemistries because they use less lithium per unit of capacity. Tesla wants to minimize lithium use per battery. This may increase the importance of nickel and Indonesia as a result.

Year ago, President Republic of Indonesia Joko Widodo had lined up a high-profile meeting with Elon Musk at the private space agency's headquarters, where he was given a private tour.

As Jokowi Widodo praised the tech baron as a "super genius", Mr Musk declared he was "very interested" in the future of Indonesia, a country of 280 million people.

The world's richest man also said the country exuded "positive energy".

"We're going to look, from a Tesla and Space X standpoint, to try and do some partnerships in Indonesia," Mr Musk said, flagging "future collaboration on many fronts".

The electric vehicle industry is in a supply crisis: There is not nearly enough raw nickel, lithium and other metals and minerals to build the batteries for the millions of EVs that the industry envisions selling this decade. Every Western EV and battery manufacturer on the planet is more or less in the same jam—none has sufficient battery raw materials to build all the EVs it would like to.

According to the Elon-Luhut meeting, Elon says that Tesla already built 3 million Teslas but only sold around 1.8 million. Elon tried to make sure Tesla finance was very healthy, not like GM or Ford (was nearing bankruptcy) after oversupply. The specter of a global recession, increased competition from Western and Chinese EV manufacturers, and the brand damage from Elon Musk’s Twitter-related antics do not appear to be a factor in Tesla’s production capacity calculus. 

Last January, according to Reuters and Bloomberg, (plan of) Gigafactory in Indonesia to target 1 million unit installed capacity. But this is logical if Elon postponed not only (Gigafactory plan) in Indonesia but also in Mexico, when Elon Musk said that Tesla already built 3 million units but sold only around 1.8 million units. Tesla may be delaying its investment plans due to overproduction and the current unfavorable global economic conditions, as suggested by Minister Luhut Binsar Pandjaitan. Nonetheless, the interest shown by Tesla in establishing a presence in Indonesia underscores the country’s growing importance in the global EV market and its potential as a manufacturing hub for sustainable transportation.

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-prada- Adi Mulia Pradana is a Helper. Former adviser (President Indonesia) Jokowi for mapping 2-times election. I used to get paid to catch all these blunders—now I do it for free. Trying to work out what's going on, what happens next. Arch enemies of the tobacco industry, (still) survive after getting doxed. Now figure out, or, prevent catastrophic situations in the Indonesian administration from outside the government. After his mom was nearly killed by a syndicate, now I do it (catch all these blunders, especially blunders by an asshole syndicates) for free. Writer actually facing 12 years attack-simultaneously (physically terror, cyberattack terror) by his (ex) friend in IR UGM / HI UGM (all of them actually indebted to me, at least get a very cheap book). 2 times, my mom nearly got assassinated by my friend with “komplotan” / weird syndicate. Once assassin, forever is assassin, that I was facing in years. I push myself to be (keep) dovish, pacifist, and you can read my pacifist tone in every note I write. A framing that myself propagated for years.

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