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Indonesia, Germany Strengthen Economic Ties with Focus on Trade and Investment

Indonesia

Jakarta, October 3, 2026 – The Europe Today: Indonesia and Germany are seeking to expand bilateral trade and investment cooperation across a range of strategic sectors, including industry, infrastructure, energy, digital transformation, healthcare, life sciences and human resource development.

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia sees significant opportunities to deepen economic cooperation with Germany, emphasizing the importance of translating strong bilateral relations into concrete economic partnerships.

Speaking at a German Unity Day celebration in Jakarta, Hartarto said relations between Indonesia and Germany had continued to develop over the past decade, supported by mutual respect, trust and shared interests.

Indonesia and Germany are marking 74 years of diplomatic relations in 2026, ahead of the 75th anniversary of bilateral ties in 2027. Hartarto described 2026 as an important year for strengthening relations, citing a series of high-level visits and meetings.

German President Frank-Walter Steinmeier paid a state visit to Indonesia in June, during which the two countries reaffirmed their commitment to strengthening cooperation in economic relations, investment, energy transition, education and employment.

Hartarto also highlighted discussions with a German business delegation led by Florian Hahn, Minister of State at the German Federal Foreign Office. The talks focused on the Joint Economic and Investment Committee, industrial and green cooperation, investment and human resource development.

In August, Hartarto received German Federal Minister for Economic Cooperation and Development Reem Alabali-Radovan, who was accompanied by government officials, members of the Bundestag and representatives from the financial and business sectors.

The two sides explored opportunities to utilize German technological expertise and financing capabilities for projects in Indonesia, particularly in renewable energy, electricity infrastructure, the electric vehicle and battery ecosystem, semiconductors, digital infrastructure and sustainable financing.

Hartarto noted that Germany and Japan serve as co-leads of the International Partners Group under Indonesia’s Just Energy Transition Partnership (JETP), which is designed to accelerate investment and financing for Indonesia’s clean energy transition. The partnership has funding commitments exceeding US$20 billion.

Indonesia also sees considerable scope for expanded cooperation in vocational education and workforce skills development, including opportunities for skilled Indonesian workers to contribute to the German economy.

Germany remains one of Indonesia’s important economic and industrial partners. Bilateral trade reached approximately US$6.11 billion in 2025, while Germany’s cumulative investment in Indonesia from 2021 through the first quarter of 2026 exceeded US$1 billion. More than 250 German multinational companies currently operate in Indonesia.

Hartarto said existing mechanisms, including the Indonesia-Germany Joint Economic Committee and JETP, could be utilized to further strengthen economic ties.

He also highlighted the planned signing of the Indonesia-European Union Comprehensive Economic Partnership Agreement (Indonesia-EU CEPA), expected in 2026, followed by the ratification process. He expressed hope that implementation could begin in early 2027.

According to Hartarto, the agreement is expected to broaden market access, increase trade and strengthen business engagement and investment between Indonesia and EU member states, including Germany.

“Indonesia remains committed to strengthening its partnership with Germany in line with our national development priorities,” Hartarto said.

He also congratulated the German government and people on the occasion of German Unity Day and expressed hope that the friendship and partnership between Indonesia and Germany would continue to grow in the coming years.