Indonesia to Pitch Data Center Opportunities to Elon Musk

Indonesia is seeking to capitalize on its close ties with Elon Musk by presenting business opportunities, including data center development, despite his previous rejection of an electric vehicle battery factory proposal, reports the Wall Street Journal.

Musk, who struck a $5 billion deal in 2022 to purchase nickel from Indonesia, had previously declined the battery factory proposal due to the distance from Tesla's car manufacturing facilities.

"We offered this, but at the time, they had their own idea that they’re going to do it in the U.S.," Luhut Binsar Pandjaitan, chairman of Indonesia's National Economic Council, told the WSJ. "But I understand also because it’s very close to the factory" for Tesla vehicles.

Tesla did not immediately respond to a request for comment.

Pandjaitan, who played a key role in fostering the close relationship between Indonesia and Musk's companies, revealed he is now actively pursuing data center opportunities with xAI, Musk's artificial intelligence company.

Pandjaitan, a senior leader in the previous administration and now an advisor to the new president, Prabowo Subianto, emphasized the strong bond between Indonesia and Musk.

"We are friends," Pandjaitan said of his relationship with Musk.

He recently had a brief Zoom call with Musk to congratulate him on his role in the recent US election and his new position leading the Department of Government Efficiency.

"Welcome to the big headache," Pandjaitan recalled joking. He added that he explained to Musk that government advisors, unlike corporate heads, "cannot make a decision alone."

Pandjaitan plans to formally discuss the xAI data center investment in Indonesia with Musk during a meeting in the US following President-elect Donald Trump's inauguration in February. He had briefly raised the idea during Musk's visit to Bali in May for the launch of Starlink, Musk's satellite-based internet service, in Indonesia.

The Indonesian government had also previously proposed to Musk, who also heads SpaceX, the possibility of launching rockets from Indonesia instead of the US. While Musk declined, citing existing infrastructure in the US, Pandjaitan noted that the proposal remains open.