Jakarta, CNBC Indonesia – Deputy for Investment and Mining Coordination at the Ministry of Maritime Affairs and Fisheries Septian Hario Seto answered the issue of Starlink entering Indonesia. One of them is related to Starlink opening investment related to Tesla being able to operate in Indonesia.

He denied this. The government, according to him, is looking at the licensing process and the benefits of Starlink for Indonesia.

“What we need to emphasize is that this is not like that. It's like bartering. Oh, we gave him Starlink permission and then he invested in a car, no,” explained Septian in an interview, Tuesday (4/6/2024).

“We really look at when processing Starlink permits, okay, what are the benefits of Starlink for us? If the benefits are big, then of course as long as it meets the regulations and rules, Starlink can operate,” he added.

Elon Musk, owner of SpaceX which provides Starlink services, is known to have come to Indonesia in the middle of last month. At that time he inaugurated Starlink operations in Indonesia.

However, Musk also did not mention investment plans in Indonesia. He only said that for now he is focusing on Starlink in Indonesia because it is profitable for people in remote areas.

Regarding the Tesla factory, Septian explained that Musk was probably calculating his expansion plans. Moreover, the electric car manufacturer has also spread across various regions from Germany, China, and even several places in the United States (US).

“Of course he will calculate how much utilization there is. If the utilization is still below 100%, yes. Still 60, 70 or even 50, of course he will also think about why he is building a factory in a new place like that,” he explained.

Of course the government is open to Musk wanting to invest in an electric car factory in Indonesia, but it is not forcing him to do so.

So the focus is on looking at the market, including targeting manufacturers who can produce electric cars according to the Indonesian market. For example, regarding price, he said Tesla still sells its products much higher than other cars that are often seen on Indonesian roads.

“It would be a shame if we forced them to build a factory in Indonesia but the cars don't sell in Indonesia, wouldn't that be a shame,” said Septian.

[Gambas:Video CNBC]

(dem/dem)