Technical Assistance II
The recent visit to Europe by an Indonesian delegation, comprising the Ministry of Investment/BKPM and the Ministry of National Development Planning/Bappenas, has opened doors to an array of potential investment opportunities in Indonesia. The mission, facilitated by ARISE+ Indonesia, was a chance for the delegation to explore investment ecosystem in Europe and establish vital connections. Numerous follow-up meetings and visits are now set between the Ministry of Investment/BKPM, the European Union Delegation in Jakarta, and European financial institutions and companies.
The insights were shared by Indra Darmawan, Special Advisor to the Minister of Investment, during a meeting with ARISE+ Indonesia on June 14, 2023. This gathering aimed to assess key findings from the visit, discuss future actions, and outline plans for the EU Investment Attraction Plan.
"During our interactions with 22 leading institutions in the European investment ecosystem, it was clear that there's a genuine interest among potential investors to explore opportunities in Indonesia," Mr Indra explained. The meetings with the European Commission delegation on the Global Gateway and European Fund for Sustainable Development Plus (EFSD+) financing frameworks revealed potential funding options for Indonesia's green economy projects.
Mr Indra stressed the need for immediate action. "We must promptly follow up on this interest. I've already coordinated with Mr Noor Fuad Fitrianto, the Director of Services and Regional Planning, to identify projects most ready for funding under these schemes."
The meeting, which was led by Daniel Nicholls, a Senior Investment Expert at ARISE+ Indonesia, notably highlighted the successful implementation of the triple helix model. This model, which sparks innovation across various sectors, has proven to be an engine driving economic growth in developed countries. Gleaning insights and inspiration from this successful model and its application across Europe, participants discussed potential initiatives to apply the model in Indonesia, fine-tuned to leverage the country's distinct strengths and advantages within its industrial ecosystems or special economic zones.
Richard Silitonga, an Investment Planner at Bappenas, highlighted the robust SME ecosystems in Europe, which often operate independently of government intervention.
Alessandro Martinatto, Team Leader of ARISE+ Indonesia TA II, suggested that these insights could be assessed further to cultivate sectoral investment ecosystems in Indonesia, with special emphasis on the blue economy, renewable energy, and other priority sectors.
The subsequent meeting with the EU Delegation in Jakarta, scheduled for July 2023, will include representatives from BKPM, Bappenas, the Coordinating Ministry for Maritime and Investment Affairs, and other key stakeholders. The meeting will delve deeper into the Global Gateway and EFSD+ mechanisms.
In response to the growing interest from potential EU investors, BKPM and ARISE+ Indonesia will convene a Focus Group Discussion on July 18, 2023, to obtain private sector feedback on Investment Projects Ready to Offer (IPROs) in the Agribusiness and Fisheries sectors.
Following the productive meeting with the Directorate General for Climate Action (DG CLIMA) during the European visit, an online follow-up session is also planned. DG CLIMA will engage with BKPM, Bappenas, and other relevant Government of Indonesia entities to discuss carbon markets. Insights from this session will feed into a broader Assessment of Carbon Markets and their link with FDI decisions, which ARISE+ Indonesia will conduct in Q3 2023.
