Investment from 11 French Companies Stalled, Government Steps In - Monitor Indonesia

Jakarta, MI - Finance Minister Purbaya Yudhi Sadewa stated that the government is ready to assist in overcoming investment obstacles faced by 11 French companies in Indonesia. This was conveyed during the International Seminar on Debottlenecking on Tuesday (12/5/2026). Over the past four years, several French company investments have been delayed due to bureaucratic issues and regulatory uncertainties. Indonesia’s Ambassador to France, Mohammad Oemar, said that investors require regulatory certainty before realising their business commitments in Indonesia. According to him, several government draft regulations, including Presidential Regulations, are still considered insufficiently clear for company operations in the field. “Investors want more predictability so that investment plans can be estimated to proceed as per the company,” Oemar said virtually. This situation has drawn government attention because France is one of Indonesia’s strategic investors, particularly in the renewable energy, infrastructure, technology, manufacturing, and aviation sectors. However, investment realisations often stall due to sudden policy changes and overlapping regulations between central and regional governments. In response, Purbaya urged investors to utilise the Debottlenecking Task Force or P2SP Task Force as the official reporting channel. Through this task force, the government is prepared to expedite the resolution of various issues hindering foreign investment into Indonesia. “So if those eleven report, all eleven will definitely be addressed. More or less like that. But let’s say, 50 percent of it could depend on time not too long if they report,” Purbaya stated. He emphasised that active involvement from investors is essential so the government can map problems more specifically and find appropriate solutions. According to him, without official reports from businesses, the ministry would face difficulties in identifying bottlenecks in the investment flow. As a follow-up step, Purbaya is also preparing disincentive policies for regional governments or ministries/institutions deemed to be obstructing investment inflows. This policy aims to ensure all parties comply with decisions established in debottlenecking sessions. “I have the power to return regional budgets, so anything that disrupts investment, we will give disincentives,” he said. The government is also strengthening investment reform efforts by gathering ambassadors from 61 countries to directly absorb input regarding various investment barriers in Indonesia. This step is expected to realise commitments from previously signed memoranda of understanding, while attracting more interest from new investors in the European region.