Indonesia Seeks to Deepen Strategic Economic Cooperation with Germany

Jakarta, The Gulf Observer: Indonesia is seeking to deepen cooperation with Germany across a broad range of strategic sectors, including industry, infrastructure, trade, investment, energy, digital transformation, healthcare, life sciences and human resource development, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

Speaking at a German Unity Day celebration in Jakarta, Hartarto said Indonesia and Germany had continued to strengthen bilateral relations over the past decade, based on mutual respect, trust and shared interests.

Indonesia and Germany are commemorating 74 years of diplomatic relations this year, ahead of the 75th anniversary of bilateral ties in 2027.

Hartarto said 2026 marked an important milestone in bilateral relations, citing a series of high-level visits and meetings between the two countries.

He noted that German President Frank-Walter Steinmeier paid a state visit to Indonesia in June 2026. During the visit, both countries reaffirmed their commitment to strengthening cooperation, particularly in economic relations, investment, energy transition, education and employment.

Hartarto also highlighted his meeting with a German business delegation led by Florian Hahn, Minister of State at the German Federal Foreign Office, which focused on translating strong political relations into concrete economic cooperation.

The discussions covered the Joint Economic and Investment Committee, industrial and green cooperation, investment and human resource development.

In August 2026, Hartarto received German Federal Minister for Economic Cooperation and Development Reem Alabali-Radovan, who was accompanied by a delegation comprising government officials, members of the Bundestag and representatives from financial and business sectors.

The two sides explored opportunities to utilize Germany’s technological expertise and financing capabilities to support projects in Indonesia, particularly in renewable energy, electricity infrastructure, electric vehicles and batteries, semiconductors, digital infrastructure and sustainable financing.

Hartarto said Germany, together with Japan, serves as a co-lead of the International Partners Group (IPG) under Indonesia’s Just Energy Transition Partnership (JETP).

The partnership provides a platform to accelerate investment and financing for Indonesia’s clean energy transition, with funding commitments exceeding US$20 billion.

Beyond industrial and energy cooperation, Indonesia also sees considerable potential for expanding collaboration in vocational education and workforce skills development.

Hartarto said there were opportunities for skilled Indonesian workers to contribute to the German economy, while cooperation in vocational training could further strengthen human resource development between the two countries.

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

More than 250 German multinational companies are currently operating in Indonesia, reflecting the depth of economic and industrial engagement between the two countries.

Hartarto said Indonesia and Germany could further strengthen economic cooperation through existing mechanisms, including the Indonesia-Germany Joint Economic Committee and the JETP.

He also highlighted the planned signing of the Indonesia-European Union Comprehensive Economic Partnership Agreement (Indonesia-EU CEPA), expected to take place in 2026, followed by the ratification process within the same year.

Indonesia hopes implementation of the agreement can begin in early 2027.

According to Hartarto, the agreement is expected to expand 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 congratulated the German government and people on German Unity Day and expressed hope that the friendship and partnership between Indonesia and Germany would continue to develop in the coming years.