Indonesia in talks with Tesla on potential investment

Indonesia in talks with Tesla on potential investment
Tesla CEO Elon Musk
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Updated 06 October 2020

Indonesia in talks with Tesla on potential investment

Indonesia in talks with Tesla on potential investment
  • Tesla is looking to ramp up production of trucks and solar projects

JAKARTA: Indonesia’s government is in early discussions with electric vehicles maker Tesla Inc. about a potential investment in the Southeast Asia country, a major producer of nickel, an official said.

Indonesia is keen to develop a full supply chain for nickel at home, especially for extracting battery chemicals, making batteries and eventually building EVs.
It has stopped exports of unprocessed nickel ore to support investment in its domestic industries.
Ayodhia Kalake, a senior official at the Coordinating Ministry for Maritime and Investment, said Tesla had reached out to the government informally about a possible venture, but he did not specify what it had in mind.
“It was still an early discussion and was not detailed yet,” Ayodhia said in a statement on Monday.
“We need further discussion with Tesla,” he said, adding that Indonesia has a number of incentives for investment in EVs.
Indonesia last month said it had secured a deal to build a lithium battery plant in the country with South Korean LG Chem Ltd. and China’s Contemporary Amperex Technology Ltd. (CATL).
Tesla is looking to ramp up production of trucks and solar projects and its boss Elon Musk earlier this year urged miners to produce more nickel and offered “giant,” long-term contracts if mined “efficiently and in an environmentally sensitive way.”
While EVs are expected to help reduce global carbon emission, activists are concerned that production of EV parts and increased mining may damage the environment.
An Indonesian nickel smelting project being built by China’s Tsingshan Group and partners to produce battery-grade chemicals withdrew a request to dispose of waste in the ocean, a government official said on Friday.


Saudi PIF seeks investment flexibility with $5 billion-plus loan

Updated 04 December 2020

Saudi PIF seeks investment flexibility with $5 billion-plus loan

Saudi PIF seeks investment flexibility with $5 billion-plus loan
  • The loan finances are for use if and when the fund identifies investment opportunities 
  • PIF  is at the heart of the Kingdom’s strategy of economic diversification under its Vision 2030 reform plan

DUBAI: The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, is in talks with bankers to raise a loan of between $5 billion (SR18.75 billion) and $7 billion to provide flexibility in its investment strategy.

The PIF has declined to comment on reports of the loan, said to be in the form of a revolving facility from a number of international banks, but sources said it was part of the fund’s regular financing arrangements, which have seen it take out and repay facilities for the past two years.

The loan finances are for use if and when the fund identifies investment opportunities and may not necessarily be used.

The PIF has been opportunistic during the coronavirus pandemic in identifying what it saw as undervalued assets on global stock markets and has been an active trader in securities on international markets.

The fund invested $7 billion in mainly US stocks in the first quarter of the year, when markets were first impacted by pandemic lockdowns, and increased and diversified that in the second quarter. It scaled back its commitments in the third quarter when asset values were near all-time highs. In the summer, it spent $1.5 billion to acquire a stake in the Indian digital business Jio Platforms.

PIF, under governor Yasir Al-Rumayyan, is at the heart of the Kingdom’s strategy of economic diversification under its Vision 2030 reform plan, while simultaneously building an international portfolio of assets.

Earlier this year, PIF repaid a $10 billion syndicated loan ahead of schedule after it completed the sale of its stake in SABIC to Saudi Aramco, and in 2018 it raised an $11 billion term-loan facility from international banks.

Previous fundraisings were done in partnership with a group of 10 banks from the US, Europe, and Asia that form part of the fund’s “core banking relationships.”