Indonesia and EU launch the Attraction Plan for EU Investment in Indonesia and strengthen investment cooperation

ARISE+ Indonesia

Indonesia and EU Launch the Attraction Plan for EU Investment in Indonesia and Strengthen Investment Cooperation

Jakarta, 25 April 2024- Today, the Ministry of Investment (BKPM) and the European Union (EU) Delegation to Indonesia unveiled the "Attraction Plan for EU Investment in Indonesia " at the BKPM premises. The launching event, organised with support from the EU-funded ARISE+ Indonesia programme, was officiated by Mr Nurul Ichwan, Deputy Minister for Investment Promotion at the BKPM, and H.E. Denis Chaibi, EU Ambassador to Indonesia. Ms PN Laksmi Kusumawati, Director of Trade, Investment and International Economic Cooperation at the Ministry of National Development Planning (Bappenas) also provided insights during her address.

Developed in partnership with ARISE+ Indonesia, the Plan aims to promote and attract a new wave of advanced and high-impact investments from Europe. It strategically aligns Indonesia's competitive strengths and investment offerings with the needs and priorities of innovative EU companies in areas of shared importance to both economies, including renewable energy, life sciences, ICT and electronics, as well as cross-sectoral thematic areas such as the green, blue and circular economies, technology, digitalization, mobility and smart cities.

Deputy Minister Nurul Ichwanemphasised the Plan's importance: "This Plan is pivotal for effectively attracting more EU investment, particularly since EU is the fourth largest foreign investment source in Indonesia in the last five years. There is an ample room for improvement between EU as the second largest economy in the world and the biggest economy in Southeast Asia. This Plan plays a crucial role in achieving our strategic investment goals and targets, while also significantly advancing Indonesia's broader economic development vision."

EU Ambassador Denis Chaibireflected on the growing economic relations: "For over three decades, the EU has been a steadfast partner for Indonesia, supporting its economic growth and development. EU foreign direct investment in Indonesia has been robust, with investment stocks totaling more than €19.3 billion. The Attraction Plan for EU Investment is an exemplary joint effort which illustrates our cooperation under the EU's Global Gateway strategy to mobilise private sector investments and innovation. It will reinforce existing efforts from the EU to mobilise investments in Indonesia, including through the European Investment Bank and through a Team Europe approach involving finance institutions from EU Member States. We look forward to the implementation of this Attraction Plan to deliver a step change in the level of quality EU investments coming into Indonesia."

The launch event presented the overall framework of the Investment Attraction Plan, including key findings, prioritised segments and strategic actions that will underpin the Plan's implementation both Indonesia and the EU. It also featured the official handover of the Plan and the co-signing of the Terms of Reference of the EU Desk at BKPM, which will be established to support the implementation of the Plan and assist EU investors throughout the investment stages - from exploration through to set-up and post-establishment services.

The event brought together high-level officials from various Indonesian ministries, the EU Delegation, representatives of EU Member States, and leaders from chambers of commerce and business associations.

A panel discussion titled "Leveraging Partnerships to Mobilise EU Investment into Indonesia" featured prominent figures such as Mr Thibaut Portevin, Head of Cooperation of the EU Delegation to Indonesia, Mr Kurniawan Ariadi, Director for Financing Development at Bappenas, Ms Sri Endang Novitasari, Director of Investment Promotion for European and American Regions at BKPM, Mr Francois de Maricourt, Chairman of EuroCham, Mr Didit Ratam, Deputy Chairperson of the European Standing Committee at Kadin Indonesia, and Mr Alessandro Martinatto, Team Leader of ARISE+ Indonesia, discussing strategies to enhance EU investment in Indonesia.

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About the Ministry of Investment

The Ministry of Investment or Indonesian Investment Coordinating Board (BKPM) is in charge of implementing policy and service coordination in investment in accordance with the provisions of the regulations. As the primary interface between business and government, Ministry of Investment is mandated to boost domestic and foreign direct investment through creating a conducive investment climate. The ministry's goal is not only to seek more domestic and foreign investment but also seek quality investments that may drive the Indonesian economy and create job opportunities for local talents.

https://www.bkpm.go.id/en/home

About the European Union

The European Union (EU) is the economic and political union of 27 Member States. Together, the EU has built a zone of stability, democracy and sustainable development while maintaining cultural diversity, tolerance and individual freedom. In 2012, the EU was awarded the Nobel Peace Prize for advancing the goals of peace, reconciliation, democracy and human rights in Europe. The EU is the world's largest trading bloc, and the world's largest source and destination of foreign direct investment. Collectively, the EU and its Member States are the largest donors of Official Development Assistance (ODA), providing more than half of ODA globally. The 27 EU Member States (in protocol order) are: Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden.

http://eeas.europa.eu/indonesia

About ARISE+ Indonesia

ARISE+ Indonesia - Trade Support Facility is one of the flagship initiatives under the EU-Indonesia cooperation framework. Launched on 2 January 2019, this technical assistance programme supports the Government of Indonesia in enhancing trade performance and competitiveness to foster sustainable and inclusive economic development. ARISE+ Indonesia is implemented through technical assistance, with a total budget of €15 million.

https://ariseplus-indonesia.org/en/

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