Signing deals & strengthening ties - a great week for European & Indonesian businesses

My colleagues from the EU-Indonesia Trade Cooperation Facility (TCF) and I have returned to Jakarta following an action-packed week supporting BKPM at various business events around Europe to mark President Jokowi’s first week-long working visit to Europe, taking in four capitals: Berlin, London, Brussels and The Hague.

First, and perhaps most importantly, the visit marked numerous high-profile investment commitments and other business deals totalling more than US$20 billion.

The week started in Berlin where the first business forum of the week brought together more than 200 German business leaders and witnessed five MoU signings between a total of eleven German and Indonesian companies. Notable agreements included: a deal between Siemens and state-owned electricity company PLN; Junghans Microtec and Pindad; and Antam, Ferostaal and Cronimet.

 German and Indonesian business leaders sign their respective agreements and Memoranda of Understanding at the signing ceremony in Berlin.

The EU Desk was present at the event to support BKPM in its contributions and also held discussions with various German companies considering new investments and expansions in Indonesia, in sectors ranging from consumer market research and power generation, to automotive manufacturing and environmental consultancy.

Next up was London, where the President and his entourage spent two days. This entourage included a large delegation of more than 50 Indonesian business leaders from various sectors. TCF was pleased to play its part in contributing to this delegation by identifying and supporting a select group of Indonesian digital and creative media companies looking to build partnerships and links with British companies and supporting organisations. This activity acted as a strong complement to BKPM’s broader investment attraction efforts – particularly as Indonesia’s ICT, digital and e-commerce industries now offer more opportunities for foreign investors than ever before. 

The business highlight of the 2-day UK visit was BKPM’s UK-Indonesia Business Forum, which was attended by more than 350 business leaders. Eleven investment commitments and Memoranda of Understanding worth more than US$18 billion were signed at a separate ceremony facilitated by the EU Desk’s Dan Nicholls.

Among the signings were a US$7.5 billion commitment from Jardines over the next five years, covering various sectors, including automotive, financial services, consumer products and property. Other prominent commitments included a $25 million project by Agrekko which will convert diesel power plants into LNG plants on Bintan Island, as well as a Framework Agreement between NV Vogt, Synergy Renewable Energy and PLN on a $200m investment plan for solar power generation over the next 3-5 years.

The EU Desk’s Dan Nicholls as Master of Ceremonies at the signing  in London, witnessed by KADIN Chairman Pak Rosan Roeslani, the British PM’s Trade Envoy to ASEAN Richard Graham MP, Trade Minister H.E. Thomas Lembong and BKPM Chairman H.E. Franky Sibarani.

Next on the tour was Brussels. The primary purpose of the President’s visit was to meet with the EU’s three key leaders – the Presidents of the Commission, the Council and the Parliament and central to the agenda was progressing the Common Economic Partnership Agreement (CEPA). Alongside these high-level meetings, the EU Desk supported BKPM in arranging a CEO Roundtable for Belgian companies, designed as a follow-up to the large Belgian Economic Mission to Indonesia led by HRH Princess Astrid in March. A select roundtable convening more than 20 people offered the chance for BKPM to address questions and discuss sector-specific challenges from both new and existing Belgian investors. Daniel Nicholls moderated the event, at which BKPM’s Chairman H.E. Pak Franky Sibarani and Chairman of KADIN, Pak Rosan Roeslani were keynote speakers.

The EU Desk’s Dan Nicholls moderates a roundtable with Belgian investors, the Chairman of KADIN, Pak Rosan Roeslani and H.E. Pak Franky Sibarani, the Chairman of BKPM.

Among the participants were Belgian companies that the EU Desk has been advising and assisting in recent months, including Dredging International (DEME Group) and International Marine Dredging Consultants (IMDC).

The fourth and final stop on the European tour was The Hague, where the Indonesia-Netherlands Business Forum organised by the Confederation of Netherlands Industry and Employers brought together more than 250 participants. Four MoUs and deals were signed at this event – these were in the infrastructure, agribusiness, renewable energy and maritime sectors.

Charming Europe, Jokowi-style:

Besides the business deals, panels, roundtables and networking events, the week’s tour offered interesting insights into the President’s approach to international business and promotion events. Each of his keynote speeches at the business events incorporated an admirable combination of facts and light-hearted anecdotes.

In Berlin, we learned that Jokowi would rather not say “Ich bin ein Berliner” because, to use his words, he “is not a bakery product”, but rather that he is a “Kölner” – a reference to his many visits to the Cologne furniture fair (IMM Cologne) when he was a furniture businessman. Meanwhile, in London, he devoted nearly a minute of his ten-minute keynote to praising Britain’s music scene and listing some of his favourite heavy metal and rock bands (for those of you eager to get in the President’s good books, these include: Deep Purple, Iron Maiden, Metallica, Queen, Guns N’ Roses – to name a few of those he listed).

Of the various sound bytes used during the week, I would say this is the one that best captured Jokowi’s message of reassurance to European investors:

This post is based on a blog piece I recently wrote as a team member of the EU-Indonesia Trade Cooperation Facility.