Indonesia, Germany push for stronger economic partnership, investment

Jakarta (ANTARA) - Indonesian President Prabowo Subianto and German Federal President Frank-Walter Steinmeier held a bilateral meeting at the Merdeka Palace, Jakarta, on Monday, resulting in a shared commitment to increase bilateral trade and investment volumes.

The two heads of state discussed strengthening partnerships across several strategic sectors, including the economy, investment, energy transition, energy security, education and employment.

"At today's meeting, we discussed strengthening the Indonesia-Germany partnership. We agreed to continue increasing the volume of mutually beneficial trade and investment," President Prabowo stated in a joint statement.

Central to the leaders' discussions was the finalization of the long-negotiated Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).

President Prabowo urged Germany to use its influence within the European Union to help accelerate the finalization of the trade agreement.

"We hope Germany will continue to play an active role in finalizing internal agreements within Europe so that the partnership can quickly deliver tangible benefits to businesses in both countries," he noted.

Furthermore, Prabowo invited German partners to expand investments in several of Indonesia’s priority sectors, particularly industrial downstreaming, public transportation infrastructure, and the electric vehicle (EV) ecosystem.

The Indonesian president also highlighted opportunities for German investors to participate in the development of the domestic semiconductor industry and to integrate into critical mineral and rare earth supply chains.

In the labor sector, both leaders discussed expanding opportunities for skilled Indonesian workers in Germany, with cooperation expected to extend beyond nursing into technology-related fields.

President Steinmeier responded by expressing Germany’s strong commitment to the IEU-CEPA, stating that Berlin feels a direct responsibility to support the agreement’s completion.

“This (agreement) will enable new investment and provide opportunities for German companies to invest in Indonesia, while promoting economic growth and closer cooperation in innovation,” Steinmeier said.

He added that the strong presence of German companies in Indonesia demonstrates that the country remains an attractive and viable destination for investment.

Germany remains Indonesia’s largest trading partner and investor in Europe.

According to government data, total bilateral trade between Indonesia and Germany reached US$6.15 billion in 2024, while German direct investment totaled US$343 million during the same period.

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Translator: Prisca Triferna V./Maria Cicilia Galuh P./Yashinta

Editor: M Razi Rahman

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