Indonesia-France Business Forum, towards a sustainable future

The Negresco Hotel Nice hosted, Monday June 10, the international business forum, organized by the General Consultate of the Republic of Indonesia in Marseille, in collaboration with the Embassy of the Republic of Indonesia in Paris. The main objective of the event was to encourage networking and information sharing, promote business relations and create an interactive platform for both countries.

Indonesia, a young republic by international standards, has a clear vision for its development by 2045, which will be its centenary year. Launched by President Joko Widodo in 2019, it is known as “Golden Indonesia 2045” (Golden Indonesia Vision 2045). The aim is for the country to become by this date a sovereign, advanced, just and prosperous nation, in fact one of the world's top four or five economies, with a new capital named “Nusantara”, a key part of the vision. .

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The first speaker of the event was the Consul General MS. Dian Kusumaningsihfollowed by Ms. Christiane Amieldelegate for international relations of the local authority of Nice. Ambassador of Indonesia to France, Andorra, Monaco and UNESCO, Mohamed Oemar then spoke, during the first visit to Nice of his mandate.

More potential for economic cooperation

He reminded participants that France and Indonesia signed a first strategic partnership agreement in 2011. At that time, the bilateral trade volume between Indonesia and France was about $1.5 billion. Last year, this figure reached $2.5 billion. While acknowledging this increase, he believed that there was great potential to achieve higher volumes. Last year, France was the 12^th Indonesia is the largest foreign investor in Indonesia with $302.8 million, in around 1,200 projects, but again the ambassador highlighted the potential for substantial growth in this figure, citing the annual growth of the Indonesia (over 5.2% at present and expected to continue at 5.3-5.6% in 2025), in an economy with a total GDP of around $1.4 trillion today .

Some participants may have been surprised to discover some Indonesian resources. For example, it is the world's leading producer of palm oil and the ambassador said that France has hundreds of industries that base their production on palm oil (food, pharmaceuticals, cosmetics, etc.). We understand that there are issues, questions regarding the sustainability aspect of palm oil. We have been discussing imports and exports for two decades now. He suggested that if French consumers are not convinced of the sustainability of palm oil, then investment may be needed to find more sustainable production methods for a raw material that France needs.

Indonesia has 33% of the world's nickel deposits, a key raw material for electric vehicles, the ambassador said. Despite the many discussions and complaints about the way Indonesia produces nickel, he believes that investments in production methods have contributed to making them more efficient, and therefore to lowering the price of raw materials on world markets. He believes that the model is sustainable since Indonesia has focused on hydropower rather than coal-fired power plants.

The country is 10th in the world^th natural gas producer, and the 4^th “Coffee producer that everyone adores in France, I think,” joked the ambassador. It is the world's second largest producer of natural rubber and the second largest supplier of fish, with one of the largest marine areas in the world, as the archipelago spans the Indian and Pacific Oceans. The world's third largest producer of cocoa, second largest producer of tin, numerous impressive figures have underlined Indonesia's potential as a trading partner.

Indonesia, an essential member of ASEAN

“As a bilateral trade agreement is not, by definition, a one-way street, the ambassador also discussed what Indonesia buys from France. Last year we purchased a satellite from Thales, which helps us have Internet access for our small islands in Indonesia. We are currently discussing a second satellite. We signed a contract to buy 42 Rafales from France, which cost $8.2 billion. We also signed a contract to purchase two Scorpne submarines, which cost $6.7 billion. We also signed a contract to purchase 30 helicopters for our air force and a number of commercial Airbuses for the Indonesian airline Garuda. We need cutting-edge French technologies in the energy transition, in digital transformation, as well as in agriculture and marine industries, including palm oil, including fishing,” the ambassador said.

He reminded participants that Indonesia is part of ASEAN, a single market like the EU, but with a population of 690 million and a combined GDP of $3.8 trillion. He spoke of the resilience of the economy compared to other regions of the world, which is naturally promising for investment, and of the free trade agreements that Indonesia has since concluded with China, Japan and South Korea, among others. An agreement with the EU is under negotiation and would help reduce the cost of Indonesian imports through reduced tariffs.

French companies, entrepreneurs, Indonesian companies, representatives of the banking sector, small and medium-sized businesses and Indonesian and French stakeholders took note of these points during the forum.

Investment Opportunities in Indonesia

The forum brought together several other distinguished speakers, who provided valuable insights into Indonesia's economic landscape and sustainable development initiatives, including the country's macroeconomic situation, Indonesia's financial strategies and economic relations international. A contribution on investment opportunities in Indonesia highlighted a number of sectors that are poised for growth and development.

The development of integrated industrial zones and their role in sustainable industrial growth were also discussed, as were Indonesian advances and initiatives in the renewable energy sector. Andrei Senkov, Co-partner at Large Estate (Bali), I finished the morning contributions, highlighting the role of international markets in supporting Indonesia's Sustainable Development Goals and providing a case study on real estate investment in Bali.

Perspectives were also presented on foreign direct investments in the Nice Côte d'Azur region and on strengthening tourism and economic collaboration between Nice and Indonesia.

The forum featured lively discussions and networking opportunities, allowing participants to engage with experts and explore potential synergies. The event received support from local authorities and organisations, including the City of Nice, Métropole Nice Côte d'Azur, Team Nice Cte ​​d'Azur and Rising Sud, reflecting a mutual commitment to strengthening economic ties and promoting sustainable practices.

About the Indonesian Consulate in Marseille and the Indonesian Embassy in Paris

The Indonesian Consulate in Marseille and the Indonesian Embassy in Paris are dedicated to strengthening bilateral relations between Indonesia and France. They actively promote economic, cultural and educational exchanges, supporting Indonesia's global engagement and the Sustainable Development Goals.

The Consulate or Embassy are at your disposal if you wish to collaborate with this young, dynamic and promising country in one of these areas.