Indonesian Political, Business & Finance News

Ministry of Investment and EU Launch Joint EU Desk to Boost European Foreign Direct Investment in Indonesia

| Source: GALERT
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) and the European Union Delegation to Indonesia have officially signed a Cooperation Statement for the establishment of an EU Desk that will operate within the Ministry's offices. The initiative marks a new chapter in strengthening collaboration to facilitate increased foreign direct investment (FDI) from the EU to Indonesia.

Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani expressed optimism that the establishment of the EU Desk would drive greater EU investment in Indonesia. The presence of the EU Desk at the Ministry is aligned with President Prabowo's directive to simplify regulations and policies to reduce bureaucratic barriers, particularly in investment matters.

"We believe the EU Desk will open more channels of communication and potential strategic cooperation that can be mutually beneficial. The EU is an important partner for Indonesia, and the establishment of this EU Desk will further strengthen collaboration going forward," said Minister Rosan.

The EU Desk will serve as a service centre for EU investors seeking to invest in Indonesia, with functions encompassing market intelligence provision, business licensing guidance, business cooperation facilitation, identification of potential investment projects, and regulatory policy harmonisation between the two parties. Cooperation will be directed towards future-oriented sectors relevant to both Indonesian and European priority policies.

"Of course, we are increasingly open to broader cooperation. I believe that with this EU Desk, more partnerships will be created in the future. We are ready to continue forging and strengthening collaboration with the EU going forward," Rosan added.

The move also reflects the Ministry's commitment to supporting the accelerated conclusion of the EU-CEPA (European Union-Comprehensive Economic Partnership Agreement), which is hoped to be agreed before year's end.

EU Ambassador to Indonesia Denis Chaibi emphasised that the EU Desk is not merely a technical facility but a representation of shared ambition to deliver high-quality and sustainable investment. Chaibi explained that the EU currently holds total global investment stock of USD 11,000 billion, yet the portion absorbed by Indonesia remains relatively low. He therefore affirmed a commitment to promoting diversification of EU investment, with Indonesia as one of the priority destination countries.

"The sectors we wish to cooperate on are those related to the Astacita vision. We are not the best in every sector, but we are champions in renewable energy, water, waste management, technology, and for all of these, European companies are world leaders or number two. We want to support Indonesia's efforts to attract more impactful FDI, create jobs, and promote cooperation in strategic sectors aligned with Indonesia's national development vision," said Chaibi.

According to Ministry data, total realised EU investment during the period from 2019 to the first quarter of 2025 reached USD 13 billion, with priority sectors including the chemical and pharmaceutical industry at USD 2.1 billion; electricity, gas and water at USD 1.9 billion; housing, industrial estates and office complexes at USD 1.1 billion; transportation, warehousing and communications at USD 1.07 billion; and other services at USD 1.05 billion.
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