Wednesday, 02 September 2026
German President Frank-Walter Steinmeier’s visit to Jakarta in June 2026 was more than just a formal state visit. Behind the official ceremonies and meetings, Germany and Indonesia were looking for ways to make their economic relationship stronger, especially in business, investment, and energy.
Steinmeier met Indonesian President Prabowo Subianto at the Merdeka Palace on June 15. He arrived in Jakarta together with a delegation that included German business representatives from different sectors. The presence of these business figures showed that Germany was serious about finding new opportunities in Indonesia.
One of the main topics discussed by the two leaders was how to increase trade and investment between Germany and Indonesia. Both sides agreed that there is still plenty of room for businesses from both countries to work together. Indonesia sees Germany as an important European partner, while Germany considers Indonesia one of Southeast Asia’s key economic and political partners.
Steinmeier also highlighted the importance of the Indonesia-European Union Comprehensive Economic Partnership Agreement, or IEU-CEPA. The agreement is expected to create a better framework for trade and economic cooperation between Indonesia and European countries. For German companies, stronger economic ties could make it easier to explore opportunities in Indonesia and expand their business activities.
Energy was another major point during the discussions. Germany is interested in supporting Indonesia’s transition toward cleaner and more sustainable energy. This is important because both countries are looking for ways to reduce their dependence on fossil fuels while developing new energy sources.
Indonesia also invited Germany to expand investment in several strategic areas, including energy transition, industrial downstreaming, electric vehicles, transportation, and the semiconductor industry. Critical minerals, including rare earth elements, were also mentioned as an area where cooperation could grow.
For Germany, Indonesia offers an interesting combination of a large domestic market, natural resources, a growing industrial sector, and an increasingly important position in Southeast Asia. For Indonesia, German investment could bring technology, expertise, financing, and new business partnerships.
The energy transition could become one of the most interesting areas of cooperation. Germany has played an important role in international clean-energy financing and is a co-lead of Indonesia’s Just Energy Transition Partnership. That means the relationship is not only about selling products or building factories. It can also involve developing cleaner infrastructure and supporting Indonesia’s long-term energy goals.
Steinmeier’s Jakarta visit therefore sent a clear message: Germany wants to deepen its economic relationship with Indonesia. While investment decisions still depend on individual companies and projects, the political support from both governments could create more opportunities in the years ahead.
For Indonesia, having German companies looking seriously at the market is certainly positive news. If the cooperation continues, the partnership could bring benefits not only in trade and investment but also in technology, clean energy, jobs, and industrial development.
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