In a recent meeting in Paris on March 6, 2025, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, engaged in discussions with Pascal Cagni, the Chairman of the Board of Business France and France’s Ambassador for International Investments. This high-level meeting, held during an OECD event, focused on strengthening business ties between the two countries, particularly in the realm of investments.
During the meeting, both nations reaffirmed their commitment to enhancing cooperation across various sectors, including trade, investments, defense industries, and France’s support for Indonesia’s accession process to become a full member of the Organisation for Economic Co-operation and Development (OECD).
Airlangga emphasized the importance of France’s support in finalizing negotiations for the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA). He highlighted the significant benefits this agreement would bring to trade and investment sectors in Indonesia with the European Union, leading to increased exports and streamlined investment processes. Airlangga stressed the urgency of concluding negotiations swiftly to capitalize on collaboration opportunities between Indonesia and EU countries.
Amidst the current global trade landscape marked by protectionism, strategic mitigation strategies are essential to ensure smooth trade and investment flows between Indonesia and the European Union. Airlangga also promoted potential collaboration with France in developing green technology innovations to support Indonesia’s national industries in meeting the requirements of the Carbon Border Adjustment Mechanism (CBAM).
Specifically, Airlangga sought France’s support in technology transfer, investments, and the development of low-carbon industrial capacities, particularly in the steel, aluminum, and fertilizer sectors. He highlighted France’s expertise in hydrogen technology and proposed utilizing green hydrogen in pilot projects for low-carbon material and fertilizer production.
Furthermore, Indonesia advocated for France’s commitment to green financing, notably through the Just Energy Transition Partnership (JETP) initiative, to aid in funding industrial transition towards CBAM compliance. Chairman Cagni expressed full support for Indonesia’s policy reform efforts aligned with OECD standards to enhance transparency and public governance, thereby attracting more foreign investments, including those from France.
France stands as a key economic partner for Indonesia, ranking as the 11th largest origin of Foreign Direct Investment (FDI) globally and the 3rd largest from Europe, and the 2nd largest from the European Union in 2023. This fruitful partnership underscores the mutual benefits and strategic importance of economic collaborations between the two nations.
### Strengthening Economic Ties through Strategic Partnerships
Chairman Cagni’s endorsement of Indonesia’s policy reform initiatives underscores the shared goal of enhancing transparency and governance to attract more foreign investments. By aligning Indonesia’s policies with OECD standards, the country aims to create a conducive environment for international investors, including those from France, to engage in various sectors and contribute to economic growth.
### Unlocking Innovation for Sustainable Development
Airlangga’s emphasis on green technology collaborations with France highlights Indonesia’s commitment to sustainable development. By leveraging France’s expertise in hydrogen technology and promoting green financing initiatives, Indonesia seeks to foster innovation and environmentally friendly practices within its industries. This partnership paves the way for transformative solutions to address climate challenges and drive economic progress.
In conclusion, the recent meeting between Indonesia and France exemplifies a strategic commitment to bolstering economic ties, fostering innovation, and promoting sustainable development. Through collaborative efforts and mutual support, both nations aim to navigate the complex global economic landscape, drive investment flows, and create a prosperous future for their citizens and industries.
