UPDATE 2: Tesla closes deal to construct production facilities in Indonesia – Bloomberg News

(Additional Comment from the Indonesian Minister in Paragraph 3 on ongoing talks

Jan 12, 2012 (Reuters) – Tesla Inc is close to a preliminary agreement to build production facilities for Indonesia, Bloomberg News reported Wednesday, citing unidentified sources familiar with the matter.

Elon Musk, the Chief Executive, posted on Wednesday that articles citing “unnamed sources” are often false. This was in response to a tweet about the report.

Luhut Pandjaitan is Indonesia’s highest cabinet minister and has been leading negotiations with Tesla. He declined to give more details citing a confidentiality agreement.

Reuters did not immediately get back to the maker of electric vehicles.

Musk said last month that Tesla was very close to choosing the location for its new “Gigafactory,” following media reports suggesting that Tesla could announce a factory in Nuevo Leon, northern Mexico, as soon as December.

According to South Korea’s presidential offices, Musk stated that South Korea was one of the top candidates for a factory to make EVs in Asia.

Tesla produces its electric cars in China’s Shanghai and Germany’s Berlin.

According to the latest reports, the Indonesia talks are expected to include production facilities and a facilitation of the company’s supply chains.

Luhut said that Tesla signed deals worth $5 billion to purchase materials for its batteries from Indonesian nickel processing companies.

In comments to Bloomberg News, Indonesia’s President Joko Widodo called on the electric vehicle manufacturer to make its cars and batteries in Indonesia in August. (Reporting by Akash Sharma in Bengaluru, Hyunjoo Shin in Seoul, Bernadette Christina Munthe, Jakarta; Editing done by Shailesh Kuber and Ed Davies.