The Attraction Plan for EU Investment in Indonesia
Aligning Indonesia’s key competitive strengths and investment offerings with the needs and priorities of innovative EU industries and investors
ARISE+ Indonesia is working with the Ministry of Investment/BKPM to develop a strategic Investment Attraction Plan to promote and attract a ‘new wave’ of advanced and high-impact investments from Europe.
The Plan focuses on areas that are of strategic importance to both economies: renewable energy, green and circular economy, pharmaceuticals, technology, digitalization and smart cities.
According to European Union Trade and Investment with Indonesia 2022-2023, collectively, the EU remains among the top 5 investors in Indonesia and is the biggest non-Asian investor. There is scope for so much more, however, not only in quantitative terms, but also in terms of high-quality, impactful and SDG-oriented investment projects that can deliver transformative benefits to Indonesian industries, communities and citizens.
Indonesia will continue to offer immense potential on multiple fronts – including investment opportunities for European firms, while Europe is home to some of the world’s leading private companies, centres of excellence and ecosystems in future-oriented industries of great importance to Indonesia.
The Attraction Plan for EU Investment in Indonesia aims to leverage this potential, drawing on extensive quantitative and qualitative analyses to set out priority sectors, subsectors and business activities where there is best alignment between Indonesia’s investment offerings (the supply side) and EU investor appetite and interest (the demand side) from innovative companies, clusters and centres of excellence.
The Plan focuses on areas that are of strategic importance to both economies: renewable energy, green and circular economy, pharmaceuticals, technology, digitalization and smart cities.
According to European Union Trade and Investment with Indonesia 2022-2023, collectively, the EU remains among the top 5 investors in Indonesia and is the biggest non-Asian investor. There is scope for so much more, however, not only in quantitative terms, but also in terms of high-quality, impactful and SDG-oriented investment projects that can deliver transformative benefits to Indonesian industries, communities and citizens.
Indonesia will continue to offer immense potential on multiple fronts – including investment opportunities for European firms, while Europe is home to some of the world’s leading private companies, centres of excellence and ecosystems in future-oriented industries of great importance to Indonesia.
The Attraction Plan for EU Investment in Indonesia aims to leverage this potential, drawing on extensive quantitative and qualitative analyses to set out priority sectors, subsectors and business activities where there is best alignment between Indonesia’s investment offerings (the supply side) and EU investor appetite and interest (the demand side) from innovative companies, clusters and centres of excellence.
The six sector groupings being assessed as part of the plan are:
In addition to sectors, the plan assesses key cross-sectoral themes, including the green, blue and circular economy, technology and digitalization
Highlights
The Attraction Plan for EU Investment in Indonesia has drawn on a multitude of quantitative and qualitative insights, including:
- More than 40 1-on-1 consultations with European businesses operating in Indonesia and ASEAN, to determine their perspectives on investable opportunities in the immediate and short-term, as well as longer-term opportunities that could be harnessed if business enabling environment challenges are addressed.
- Multi-stakeholder, sector-focused events between European stakeholders and relevant Indonesian Government ministries. Events focused on the Healthcare & Pharmaceuticals sector and the Agribusiness & Fisheries sector have already taken place and convened CEOs and other senior executives from European companies in those sectors, as well as industry experts and key line ministries. A selection of ‘ready-to-offer’ investment project opportunities were presented by BKPM during each session.
- Quantitative benchmarking assessments, looking at European FDI trends, plus sectoral and thematic benchmarking assessments to assess how Indonesia’s investment offer compares with other countries on a variety of metrics, as well a range of data-driven trends on outward FDI from EU Members States, and their respective cities, regions and clusters, in each of the six sector groupings.
Why an Attraction Plan for EU Investment in Indonesia
Highlights of the Attraction Plan for EU Investment in Indonesia
Deputy Minister for Investment Promotion at the Ministry of Investment/BKPM, Mr Nurul Ichwan, delivers the opening speech at the launch of the Attraction Plan for EU Investment in Indonesia on 25 April 2024 at the BKPM office.
The Ambassador of the European Union Delegation to Indonesia and Brunei Darussalam, H.E. Denis Chaibi, delivers his remarks at the launch of the Attraction Plan for EU Investment in Indonesia on 25 April 2024, at the BKPM office.
ARISE+ Indonesia Technical Assistance II Team Leader, Mr Alessandro Martinatto, delivers his remarks at the launch of the Attraction Plan for EU Investment in Indonesia on 25 April 2024, at the BKPM office.
ARISE+ Indonesia Investment Policy Senior Expert, Mr Daniel Nicholls, presents the highlights and key findings of the Attraction Plan for EU Investment in Indonesia during the launch event on 25 April 2024, at the BKPM office.
A panel discussion titled "Leveraging Partnerships to Mobilise EU Investment into Indonesia" featured prominent figures from the EU Delegation to Indonesia, the Ministry of National Development Planning/ Bappenas, the Ministry of Investment/BKPM, EuroCham, Kadin Indonesia, and ARISE+ Indonesia, discussing strategies to enhance EU investment in Indonesia.
The co-signing of the Terms of Reference for the re-establishment of the EU Desk at BKPM, which will be set up to support the implementation of the Plan and to assist EU investors in all stages of investment, from exploration through to establishment and post-establishment services.
A delegation from BKPM and Bappenas, led by the Deputy Minister for Investment Promotion, Pak Nurul Ichwan, attend meetings with the European Commission in Brussels to discuss the Global Gateway programme and its roll-out in Indonesia, as well as to exchange insights on Carbon Trading Systems.
BKPM and Bappenas delegates visit Philips’ Global Innovation Hub in Eindhoven, The Netherlands, during their visit to Europe in May 2023, organised by ARISE+ Indonesia. Healthcare is one of the Indonesia-EU Investment Attraction Plan’s priority sectors and Philips, a long-standing EU investor in Indonesia, has a world-leading track record of innovation in life sciences. Philips’ Global Innovation Hub is situated in Brainport Eindhoven, one of Europe’s leading ecosystems for high-tech manufacturing.
BKPM hosts a Focus Group Discussion with European agribusiness and fisheries companies and experts, during which four ready-to-offer investment project opportunities are presented and discussed.
BKPM hosts an EU-led workshop on the European Fund for Sustainable Development Plus (EFSD+) for multiple Government entities, covering technical aspects and a discussion on how Indonesia can tap into EFSD+ guarantees to support sustainable development projects.
Dr. Amalia Adininggar Widyasanti, Deputy Minister for Economic Affairs at the Ministry of National Development Planning/Bappenas, shares insights on the Government’s strategic planning for the development of the healthcare sector.
Mr. Indra Darmawan, Special Advisor to the Minister for Investment (and formerly Deputy Minister for Investment Planning), welcomes participants at an event co-organised with ARISE+ Indonesia in February 2023.
ARISE+ Indonesia Team Leader, Mr. Alessandro Martinatto, sets the scene for a Focus Group Discussion on Investment in Indonesia’s Healthcare Sector.
CEOs and other senior executives from European multinationals and industry associations share perspectives on investment opportunities and challenges for Indonesia’s healthcare sector development.
Deputy Minister for Investment Promotion at the Ministry of Investment/BKPM, Mr Nurul Ichwan, delivers the opening speech at the launch of the Attraction Plan for EU Investment in Indonesia on 25 April 2024 at the BKPM office.
The Ambassador of the European Union Delegation to Indonesia and Brunei Darussalam, H.E. Denis Chaibi, delivers his remarks at the launch of the Attraction Plan for EU Investment in Indonesia on 25 April 2024, at the BKPM office.
ARISE+ Indonesia Technical Assistance II Team Leader, Mr Alessandro Martinatto, delivers his remarks at the launch of the Attraction Plan for EU Investment in Indonesia on 25 April 2024, at the BKPM office.
ARISE+ Indonesia Investment Policy Senior Expert, Mr Daniel Nicholls, presents the highlights and key findings of the Attraction Plan for EU Investment in Indonesia during the launch event on 25 April 2024, at the BKPM office.
A panel discussion titled "Leveraging Partnerships to Mobilise EU Investment into Indonesia" featured prominent figures from the EU Delegation to Indonesia, the Ministry of National Development Planning/ Bappenas, the Ministry of Investment/BKPM, EuroCham, Kadin Indonesia, and ARISE+ Indonesia, discussing strategies to enhance EU investment in Indonesia.
The co-signing of the Terms of Reference for the re-establishment of the EU Desk at BKPM, which will be set up to support the implementation of the Plan and to assist EU investors in all stages of investment, from exploration through to establishment and post-establishment services.
A delegation from BKPM and Bappenas, led by the Deputy Minister for Investment Promotion, Pak Nurul Ichwan, attend meetings with the European Commission in Brussels to discuss the Global Gateway programme and its roll-out in Indonesia, as well as to exchange insights on Carbon Trading Systems.
BKPM and Bappenas delegates visit Philips’ Global Innovation Hub in Eindhoven, The Netherlands, during their visit to Europe in May 2023, organised by ARISE+ Indonesia. Healthcare is one of the Indonesia-EU Investment Attraction Plan’s priority sectors and Philips, a long-standing EU investor in Indonesia, has a world-leading track record of innovation in life sciences. Philips’ Global Innovation Hub is situated in Brainport Eindhoven, one of Europe’s leading ecosystems for high-tech manufacturing.
BKPM hosts a Focus Group Discussion with European agribusiness and fisheries companies and experts, during which four ready-to-offer investment project opportunities are presented and discussed.
BKPM hosts an EU-led workshop on the European Fund for Sustainable Development Plus (EFSD+) for multiple Government entities, covering technical aspects and a discussion on how Indonesia can tap into EFSD+ guarantees to support sustainable development projects.
Mr. Indra Darmawan, Special Advisor to the Minister for Investment (and formerly Deputy Minister for Investment Planning), welcomes participants at an event co-organised with ARISE+ Indonesia in February 2023.
Dr. Amalia Adininggar Widyasanti, Deputy Minister for Economic Affairs at the Ministry of National Development Planning/Bappenas, shares insights on the Government’s strategic planning for the development of the healthcare sector.
ARISE+ Indonesia Team Leader, Mr. Alessandro Martinatto, sets the scene for a Focus Group Discussion on Investment in Indonesia’s Healthcare Sector.
CEOs and other senior executives from European multinationals and industry associations share perspectives on investment opportunities and challenges for Indonesia’s healthcare sector development.
Looking Ahead
Once the Investment Attraction Plan is finalised and launched, it is set to contain:
- A targeted set of priority subsectors and value chain segments in the priority sectors, where there is optimal alignment between Indonesia’s investment offering and needs, and European corporate innovations and investor interest.
- A set of new potential EU investors for the Ministry of Investment/BKPM to target, containing detailed insights on corporate profiles (including ownership structures), the key decision makers and points of contact, FDI track records, corporate development trends and other useful insights.
- A section on optimising the Indonesia-EU institutional framework for investment attraction, leveraging both established and new organisations, initiatives and instruments, such as the EU’s Global Gateway, the European Fund for Sustainable Development Plus (EFSD+).
- A high-level implementation plan, with the intention that ARISE+ Indonesia will support BKPM in starting implementation of the activities outlined in the plan, before the project closes in 2024.
"The Attraction Plan for EU Investment in Indonesia is an exemplary joint effort, which illustrates our cooperation under the EU's Global Gateway strategy to mobilise private sector investments and innovation. We look forward to the implementation of this Attraction Plan to deliver a step change in the level of quality EU investment coming into Indonesia."
H.E. Denis Chaibi
EU Ambassador to Indonesia and Brunei Darussalam
"I would like to extend our gratitude to ARISE+ Indonesia for their invaluable assistance in the development of the Indonesia-EU Investment Attraction Plan, the organisation of the mission to Europe, and their pivotal role in facilitating connections with EU investors […] We are hopeful and excited about what lies ahead and sincerely appreciate the continued commitment and support of ARISE+ Indonesia."
Nurul Ichwan
Deputy Minister for Investment Promotion and Acting Deputy Minister for Investment Planning
Republic of Indonesia
Republic of Indonesia