Indonesia holds the world's largest nickel reserves and uses those reserves to attract investment in the battery supply chain.
Nickel contracts are also in place with BHP in Australia, Chinese refiners and a project in the French territory of New Caledonia.
Tesla is diversifying its direct supply of key battery metals cobalt, lithium, and nickel and sees strong demand for these critical minerals going forward.
Tesla has also been linked to building a vehicle manufacturing plant in Indonesia after negotiations with the Indian government struggled to make headway.
A consortium led by South Korea's LG Energy Solution, the world's second-largest maker of electric vehicle batteries, last month said it planned to invest US$9 billion in Indonesia as part of a deal that would include nickel refining to producing battery cells in Indonesia.
LG's larger rival, China-based Contemporary Amperex Technology, which is already a supplier to Tesla, entered a similar-sized deal with Jakarta in April this year.
Widodo, who has asked Musk to build a space launch facility in Indonesia, said he had invited Musk to visit the country.