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rench companies are committed to investing at least US$10 billion in several business sectors in Indonesia to take advantage of the growing business opportunities in the country, Coordinating Economic Minister Hatta Rajasa said.

“The French delegates are serious about making new investments and expanding operations in Indonesia,” Hatta told reporters on Friday after meeting with French delegates at his office in Jakarta.

Hatta, along with Trade Minister Mari Elka Pangestu and Investment Coordinating Board Agency (BKPM) chairman Gita Wirjawan, met with French Minister of State for Foreign Trade Pierre Lellouche, French Minister of Transportation Thierry Mariani and a number of French businesspeople.

Hatta said that the meeting was a continuation of the previous meeting with former French finance minister Christine Lagarde, who is now the new International Monetary Fund chief, as well as the implementation of a strategic partnership agreement signed by both governments in 2009.

“I can’t give you an exact number, but their total investments could reach no less than $10 billion,” Hatta said without elaborating on the companies’ names. Hatta cited that some of the delegates were interested in energy and infrastructure sectors.

“Some of them, for example, are interested in developing geothermal resources and rail and air traffic control projects,” he said. According to Hatta, the investment for geothermal resources development alone can reach $2 billion.

Gita said that the investment for a geothermal project could probably start this year.

“I will have to meet with the investor first to discuss the area of the project. Geothermal [resources] are mostly found in Sumatra, Java and Bali,” he said. Gita said that the government was considering offering incentives to French investors.

“They have asked us for facilities for their planned investments. We can’t say anything yet and we will likely deliberate it,” Gita said, adding that he would discuss a possible tax incentive in a meeting with the finance and industry ministers.

Total S.A. president of exploration and production Yves-Louis Darricarrère said that the oil company hoped to continue its operations in Indonesia. “I am here to discuss with our business counterparts and the [Indonesian] authorities to see if we can continue another 40 years after the past 40 years,” Darricarrere said.

“In Mahakam [East Kalimantan] alone, together with our partner, we are spending $2 billion per year and we will continue to do so until 2017,” he added. According to the BKPM, during the first quarter of 2011 France realized an investment commitment worth $2.2 million over 14 non-oil projects in Indonesia.

A number of foreign investors, especially from China and South Korea, have pledged massive investment to build manufacturing factories and develop resources-based industries amid the growing confidence in Indonesia’s investment climate. (swd)