Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Luhut to Tesla: Indonesia Is Not A Banana Republic Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the United States-based electric car

Luhut to Tesla: Indonesia Is Not A Banana Republic

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the United States-based electric car manufacturer Tesla had again expressed interest in investing in Indonesia after the previous plan was canceled. Luhut asserted that if so, Tesla must meet his requirements.

"I got a call from America this morning, Tesla said they wanted to make a deal with us," said Luhut at the closing ceremony of the business-matching on domestic products event, which was broadcasted online from Bali on Thursday, March 24, 2022.

Luhut recalled that two years ago, Elon Musk's firm planned to put investment in developing lithium batteries in Indonesia. Yet the plan was canceled because they tended to overly dictate Indonesia.

"I said, 'two years ago you called me, wanting to produce a lithium battery.' You... all want to dictate [Indonesia], and I said, 'You cannot do like this. Today is different. We have to be equal'. I said you can't do that anymore. This country is not a banana republic! This country is a great country!" Luhut remarked as quoted from Bisnis.com.

Luhut remembered when Tesla wanted to enter Indonesia and the firm had to comply with the conditions given by the Indonesian government. This, Luhut continued, was also as applied to other investors, including China.

A number of conditions requested by the Indonesian government for foreign investors include conducting technology transfer, using eco-friendly technology, training local workers, and providing added value.

"I don't want you (Tesla) to make conditions for us. I make conditions for you," said Luhut.

Source: https://en.tempo.co/read/1574888/luhut-to-tesla-indonesia-is-not-a-banana-republic

Questions: What would you do if you were appointed by Elon Musk as Tesla's representative to negotiate with Mr. Luhut to realize Tesla's plan to invest in Indonesia? Please explain using the negotiation process theory by Weiss and Stripp!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Management Creating Value Along the Supply Chain

Authors: Roberta S. Russell, Bernard W. Taylor

7th Edition

9781118139523, 0470525908, 1118139526, 978-0470525906

More Books

Students also viewed these General Management questions

Question

Why do products lose money in the introductory phase?

Answered: 1 week ago