Indonesian Political, Business & Finance News

Investment Ministry and EU Inaugurate EU Desk to Boost European Investment in Indonesia

| Source: GALERT
The Investment Ministry, the Indonesia Investment Coordinating Board (BKPM), and the European Union Delegation have officially inaugurated the establishment of the EU Desk as a service centre for European investors in Indonesia. The cooperation agreement was signed by Investment Minister and BKPM Head Rosan Roeslani and EU Ambassador to Indonesia Denis Chaibi at the BKPM office on 13 June 2025.

The EU Desk will provide market intelligence, business permit guidance, business cooperation facilitation, identification of potential investment projects, and harmonisation of regulatory policies between Indonesia and the EU. The office is located at the Ministry of Investment and the BKPM.

Rosan stated that the establishment of the EU Desk aims to increase the inflow of foreign direct investment from the EU. He mentioned that this step aligns with President Prabowo Subianto's direction to simplify regulations, policies, and reduce bureaucratic barriers in the investment sector.

"We believe that the existence of the EU Desk will open up more communication channels and strategic cooperation potential that can be mutually beneficial," Rosan said in an official statement on Monday, 16 June 2025.

Rosan also mentioned that the EU Desk supports the acceleration of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which is targeted to be completed by the end of the year.

Denis Chaibi stated that the EU's total global investment stock is US$11 trillion. However, the amount of investment flowing into Indonesia remains low. He emphasised the European Union's commitment to promoting investment diversification, with Indonesia being one of the priorities. The EU focuses on cooperation in sectors aligned with Indonesia's national development agenda, including renewable energy.

"We may not be the best in every sector, but we are a leader in the field of renewable energy, water, waste management, technology, and for all of these, European companies are world leaders or number two," Denis said.

Based on data from the Investment Ministry and BKPM, the total realisation of EU investments from 2019 to the first quarter of 2025 reached US$13 billion. The largest investments were recorded in the chemical and pharmaceutical industry sector (US$2.1 billion), electricity, gas, and water (US$1.9 billion), housing and industrial areas (US$1.1 billion), transportation and communication (US$1.07 billion), and other services (US$1.05 billion).
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