Indonesia is strengthening its economic partnership with France by accelerating negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) and pushing for full membership in the Organisation for Economic Co-operation and Development (OECD). These key points were discussed during a meeting between Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and Pascal Cagni, Chairman of the Board of Business France and France’s Ambassador for International Investments, in Paris (March 6, 2025).

Minister Airlangga emphasized the importance of finalizing the I-EU CEPA, highlighting its potential to boost trade and investment between Indonesia and the European Union. "This agreement will bring significant benefits to Indonesia’s trade sector, including increased exports and streamlined investment processes," he said. The negotiations, which have gone through 19 rounds over the past nine years, are seen as crucial for fostering stronger economic ties.

In response to global trade challenges, Airlangga stressed the need to swiftly conclude the I-EU CEPA talks to secure cooperation opportunities between Indonesia and EU countries. With growing global protectionism, both nations aim to adopt strategies to maintain smooth trade flows and investment partnerships.

Beyond trade, Indonesia is looking to collaborate with France on advancing green technology. Airlangga encouraged French support for technology transfer, investment, and capacity building for low-carbon industries—particularly in steel, aluminum, and fertilizer sectors. He also highlighted Indonesia’s interest in developing a pilot project using green hydrogen for producing low-carbon materials and fertilizers, leveraging France’s expertise in hydrogen technology.

Furthermore, Airlangga urged France to fulfill its commitment to green financing through the Just Energy Transition Partnership (JETP), which aims to help fund Indonesia's industrial transition and ensure compliance with the EU’s Carbon Border Adjustment Mechanism (CBAM).

On the investment front, Pascal Cagni reaffirmed France’s support for Indonesia’s OECD accession by endorsing policy reforms aligned with OECD standards. These reforms aim to enhance public transparency and governance, ultimately attracting more foreign investment, including from France.

France remains a key economic partner for Indonesia. In 2023, France ranked as Indonesia's 11th largest foreign direct investment (FDI) source globally and the 3rd largest from Europe, solidifying its position as Indonesia’s 2nd biggest investor from the EU.

Prior to this meeting, Airlangga had also engaged with a delegation from MEDEF International the French Business Confederation on February 19, 2025, in Jakarta. Their discussions revolved around investment opportunities in strategic sectors such as renewable energy, technology, innovation, transportation, and infrastructure all crucial for driving Indonesia’s economic transformation.

The meeting in Paris was attended by senior officials, including Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, Indonesian Ambassador to France Mohamad Oemar, and Deputy for Economic and Investment Cooperation Edi Prio Pambudi.

PHOTO: KEMENKO PEREKONOMIAN

This article was created with AI assistance.