Minister of Investment and Downstream Industry/Indonesia Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani received a visit from a delegation of 35 French companies, members of the French international business association (MEDEF International), during a business meeting in Jakarta on Tuesday, February 18. 

On this occasion, Rosan stated that French investors have significant opportunities to develop the renewable energy sector in Indonesia. Indonesia’s renewable energy potential is estimated at around 3,700 gigawatts, with only 1 percent currently utilized, or approximately 13.08 gigawatts. 

Rosan explained that this potential is spread across various regions, with solar energy being the largest source. Another major source is geothermal energy, with a potential of 23 gigawatts—the largest in the world. 

“The key is to meet, discuss the potential, and at the same time, find ways to turn that potential into investments. Moreover, with 35 representatives of French companies present today, this is a great opportunity to strengthen cooperation,” Rosan stated, as quoted from a written statement received by the editorial team on Thursday, February 20. 

Rosan also emphasized the importance of concrete collaboration focusing on real opportunities. This approach can accelerate the realization of investment potential. The meeting was considered highly productive as it not only showcased Indonesia’s potential but also provided the Indonesian government with valuable feedback to strengthen collaborations between the private sector and the government as well as among private companies. 

“This is crucial to help us continuously improve existing policies and regulations,” Rosan added. 

The French Ambassador to Indonesia, ASEAN, and Timor-Leste, Fabien Penone, conveyed the French government’s commitment to strengthening economic relations with Indonesia. French companies have been actively investing in various sectors in Indonesia, ranging from nickel mining to banking. However, there is still room for further growth. 

“Strengthening the relationship between France and Indonesia is a top priority for our government,” said Penone. 

He noted that French President Emmanuel Macron and Indonesian President Prabowo Subianto have had several discussions regarding strengthening ties between the two countries. “This is why this meeting is essential for French companies, as it provides an opportunity to engage in discussions with the Indonesian government,” Penone added. 

At the same event, Vice Chairman of MEDEF International and Chairman of The France-Indonesia Business Council, Philippe Louis-Dreyfus, highlighted the potential for cooperation in infrastructure, energy, and decarbonization sectors. He expressed optimism that the visit of the French business delegation would yield positive results. 

This meeting served as evidence of the shared commitment to continuously strengthen economic relations between Indonesia and France. The European nation has become one of Indonesia’s strategic partners in developing various economic sectors, with total investments amounting to USD 1.05 billion from 2020 to 2024. 

According to data from the Ministry of Investment and Downstream Industry/BKPM, France ranks fourth as the largest source of Foreign Direct Investment (FDI) from Europe, focusing on five key sectors: housing, industrial and office areas; machinery and electronics manufacturing; the food industry; hotels and restaurants; as well as trade and repair services. 

These investments not only reflect French investors’ confidence in Indonesia’s potential but also contribute to sustainable economic growth and the strengthening of bilateral cooperation between the two countries. 

This article is published in partnership with Katadata 

Original article here