French investment in Indonesia in 2016 reached US$109 million, or approximately Rp1.45 trillion at an exchange rate of Rp13,300 per US dollar. This figure represents a 17.15 percent decrease compared to the previous year's US$131.57 billion. However, the number of projects in 2016 increased to 424, up from 197 the previous year. French foreign direct investment (FDI) showed a downward trend throughout 2015-2016. The debt crisis in Europe and the slow global economic recovery were contributing factors to the decline in foreign investment from France.
According to data from the Indonesian Investment Coordinating Board (BKPM), French investment in Indonesia ranked only 22nd, below Malta. Its contribution to foreign investment in Indonesia remained very small, accounting for only 0.4 percent of the total foreign investment in 2016, valued at US$28.96 billion.
The visit by French President Francois Hollande to Indonesia is expected to enhance cooperation between the two countries, including investment in Indonesia. During this state visit, the French and Indonesian governments signed memorandums of understanding on cooperation in defense, sustainable urban development, scientific research, technology and information; cooperation on research and development in the tourism sector; and the France-Indonesia Nusantara partnership.