Indonesia and Germany agree to boost trade, investment and expand cooperation
Indonesia and Germany have agreed to deepen their partnership across trade, investment, and a wide range of strategic sectors, reinforcing a shared commitment to long-term, mutually beneficial cooperation. The understanding was reached during a bilateral meeting between Indonesian President Prabowo Subianto and German President Frank-Walter Steinmeier at the Merdeka Palace in Jakarta.
President Prabowo emphasized that strengthening and sustaining the Indonesia–Germany partnership is a top priority for his administration, noting that this engagement also sets the stage for commemorations of the 75th anniversary of diplomatic relations in 2027. He conveyed optimism that the two countries can accelerate concrete outcomes that expand economic opportunities and bolster strategic collaboration.
At the meeting, President Prabowo reiterated Indonesia’s hope that negotiations on the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) can reach a substantive conclusion. He encouraged Germany to continue playing an active role in advancing the process within the European framework, highlighting the potential of the agreement to boost market access, investment flows, and innovation.
Indonesia also invited broader German investment in sectors central to national development and the global energy transition. Priority areas include:
- Renewable and transitional energy initiatives
- Downstream industrial development
- Electric vehicle ecosystems
- Semiconductors and advanced manufacturing
- Critical minerals and rare earth supply chains
- Infrastructure development
Beyond trade and industry, both leaders discussed expanding cooperation in education, workforce skills, and employment. President Prabowo welcomed the signing of a Letter of Intent on the Global Skills Partnership in nursing, underscoring Indonesia’s interest in broadening pathways for Indonesian professionals to work in Germany, not only in healthcare but also in high-technology fields.
President Steinmeier voiced strong support for the swift conclusion of the IEU-CEPA, describing the agreement as a platform with significant potential to create jobs, attract new investment, and spur bilateral innovation. He noted that German companies have maintained a lasting presence in Indonesia—citing firms such as Siemens, Daimler, and Continental—as evidence of Indonesia’s growing appeal both as a dynamic market and a competitive investment destination.
Energy cooperation featured prominently in the discussions. President Steinmeier highlighted opportunities to intensify joint efforts in renewable energy and energy security, pointing to global climate imperatives and evolving geopolitical dynamics as reasons to reduce dependence on fossil fuels. Both sides recognized that accelerating clean energy deployment, strengthening grids and storage, and diversifying supply chains for critical inputs will be essential to sustaining economic growth while achieving climate goals.
The meeting underscored a shared strategic outlook: closing gaps in infrastructure and industrial capacities, enhancing the resilience of supply chains, and upskilling workers to meet fast-changing technological demands. By aligning their economic and sustainability agendas, Indonesia and Germany aim to catalyze new projects, increase market confidence, and foster long-term partnerships across the public and private sectors.
With preparatory work ahead of the 75th anniversary in 2027, both governments signaled that forthcoming months will focus on translating commitments into actionable programs—particularly in energy transition, advanced manufacturing, and talent mobility. These efforts are expected to support economic stability, broaden shared prosperity, and elevate the bilateral relationship to a more comprehensive and forward-looking strategic partnership.
