Germany and Indonesia Deepen Trade: Focus in Jakarta

Saturday, 12 September 2026

Jakarta continues to play an important role in Indonesia’s international business relationships. This was once again visible in June 2026, when German President Frank-Walter Steinmeier visited Jakarta and Germany and Indonesia strengthened their cooperation in trade, investment, sustainable energy, climate action, and other areas.

The latest cooperation shows that the relationship between Germany and Indonesia is becoming broader than traditional trade. Both countries are looking at how businesses, investment, energy, and economic development can work together in the coming years.

For German companies, Indonesia offers a large and growing market. Jakarta, as the country’s main business and government center, naturally becomes an important place for discussions, partnerships, and investment activities.

One major topic in the latest cooperation is the energy transition. Germany and Indonesia are working together to support renewable energy and improve Indonesia’s electricity infrastructure. The two countries are also involved in the Just Energy Transition Partnership, or JETP, which focuses on helping Indonesia move toward cleaner energy.

Financial support is also part of the partnership. One agreement, worth 400 million euros, focuses on improving economic growth, investment, and trade through the Competitiveness, Investment, and Trade Acceleration program. Another agreement worth US$302 million supports renewable energy projects and electricity-grid infrastructure.

These projects could create opportunities for businesses from both countries. German companies are well known for their experience in engineering, technology, manufacturing, energy, and industrial solutions. Indonesia, meanwhile, has a large domestic market and significant potential for renewable energy development.

The cooperation is not limited to Jakarta, either. Other projects are being developed across Indonesia. For example, the Green Energy Corridors Sulawesi project will support the construction of a 275kV transmission line in South Sulawesi. The project is designed to help unlock the region’s renewable energy potential.

There is also the Green Bond Development Facility, which aims to strengthen Indonesia’s green bond market and attract more sustainable investment. These initiatives show that the partnership is moving from general discussions toward actual projects.

Another important factor is the Indonesia-European Union Comprehensive Economic Partnership Agreement, or I-EU CEPA. German Ambassador to Indonesia Ralf Beste said the agreement could help increase trade, exports, and investment between Germany and Indonesia.

For businesses based in Jakarta, this growing relationship could create new opportunities. German companies looking to enter the Indonesian market can use Jakarta as a base for building partnerships and understanding the local business environment.

At the same time, Indonesian businesses can benefit from German technology, investment, and expertise.

Overall, Germany and Indonesia appear to be moving toward a deeper economic relationship. With Jakarta remaining at the center of Indonesia’s business and diplomatic activities, the capital will likely continue to be an important meeting point for German and Indonesian companies as both countries look for new opportunities in trade, investment, and clean energy.