Indonesia Is Promoting Investment In Electric Vehicles (Tesla And BYD Group)

The popularity of cars is increasing, and there is also a growing desire for factories producing these vehicles to be established in a given region. To this end, Indonesia is closing agreements with Tesla and BYD Group.

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In this article:

• Global integration
• Indonesia is finalizing deals with Chinese automaker BYD Group and US automaker Tesla
• The German insurer has proved very resilient to these conditions

Global integration

Globalization has meant that more and more countries cooperate on many levels. An example of economic integration is the European Union. The European Union is a supranational political and economic union of 27 member states that are located primarily in Europe.

Countries are struggling with economic and political problems together. The year 2022 especially showed how important integration is and can be effective. From the global economic slowdown and climate change to the cost of living crisis and high levels of debt: there is no easy way to overcome this. Added to this are geopolitical tensions, which make it even more difficult to solve important global problems.

In a global economy plagued by low growth and high inflation, we need a much stronger trading mechanism. Dislocations caused by commercial and technological changes have hurt some communities. Public support for economic openness has declined in several countries. And since the global financial crisis, cross-border flows of goods and capital have stabilized. So not everyone has benefited from global integration. This can cause an increase in fragmentation.

The increase in the probability of fragmentation may be of concern as all economies are currently trying to implement climate programs, as well as deal with the problems caused by the coronavirus pandemic in the supply chain.

Global economic integration has slowed over the past decade amid rising trade restrictions. See our latest blog for how the world can prevent further fragmentation. https://t.co/832Ue4jWeb pic.twitter.com/nfNUKPUccc

— IMF (@IMFNews) January 16, 2023

Indonesia is finalizing deals with Chinese automaker BYD Group and US automaker Tesla

Many countries in the world are trying to make electric cars more popular. Indonesia is aggressively promoting investment in batteries and electric vehicles. In order not only to promote, Indonesia is taking action. Indonesia is finalizing deals with Chinese automaker BYD Group and US automaker Tesla to become Southeast Asia's electric vehicle manufacturing hub.

Such activities can attract not only investors, but also a qualified workforce, which cripples the economy. Investments in new technologies, ie in the future, will make the country attractive to young people and may attract them.

Indonesia is finalizing agreements with China's automaker BYD and U.S. carmaker Tesla to invest in electric vehicle production facilities in the country, a senior cabinet minister said. Read more: https://t.co/1M6j75Ksrj pic.twitter.com/BFqlvwWKqJ

— Reuters Business (@ReutersBiz) January 17, 2023

The German insurer has proved very resilient to these conditions

The year was undoubtedly difficult in every respect, especially for investments. 2022 was one of the worst environmental years for stocks and bonds, but the director of Allianz, one of the world's largest investors, believes the German insurer has proved very resilient to these conditions.

Market environment was one of the worst imaginable in 2022, insurer Allianz says https://t.co/lFmdTOqKYU

— CNBC (@CNBC) January 17, 2023