Coordinating Minister for Economic Affairs Reveals German Investment Potential in Jakarta and Indonesia

Tuesday, 01 September 2026

Germany has long been known as one of the world’s major industrial powers. From automotive and manufacturing to technology and energy, German companies have a strong reputation for quality and innovation. Now, Indonesia is looking to attract even more investment from Germany, with Jakarta becoming one of the areas that could benefit from closer economic cooperation.

Coordinating Minister for Economic Affairs Airlangga Hartarto has revealed that there is significant potential for German investment in Indonesia. The opportunity is not limited to one particular industry. Instead, several sectors are considered attractive for German companies looking to expand their business in Indonesia.

One of the biggest opportunities is the automotive sector. Germany is home to some of the world’s most recognizable automotive companies, while Indonesia has a large domestic market and an increasingly important position in Southeast Asia. This combination could create opportunities for investment in vehicle production, components, electric vehicles, and supporting industries.

The energy sector is another area with potential. As Indonesia continues its transition toward cleaner and more sustainable energy, German companies could play a role by bringing technology, expertise, and investment. Renewable energy, energy efficiency, and green technology are becoming increasingly important as Indonesia works toward its long-term development goals.

Jakarta could also become an important center for German business activities. As Indonesia’s economic and business hub, the capital offers access to government institutions, financial services, infrastructure, and a large consumer market. For international companies, having a presence in Jakarta can make it easier to connect with business partners and explore opportunities across the country.

But the potential is not only about Jakarta. Indonesia has a huge market spread across many regions, with different areas offering different advantages. Industrial cities can attract manufacturing investment, while areas rich in natural resources can support energy and processing industries.

For Germany, investing in Indonesia can also provide a strategic gateway to the wider ASEAN market. Indonesia is the largest economy in Southeast Asia and has strong connections with neighboring countries. This makes the country interesting for companies that want to expand their operations beyond their traditional markets.

Meanwhile, Indonesia can benefit from German investment through capital, technology transfer, new jobs, and stronger industrial capabilities. Cooperation with German companies could also help local businesses become more competitive and connected to international supply chains.

The growing interest shows that economic relations between Indonesia and Germany have plenty of room to develop. With the right policies, infrastructure, and business environment, German investment could become an important part of Indonesia’s economic growth.

For Jakarta and Indonesia as a whole, the message is pretty clear: German companies are looking at the country not just as a market, but as a potential long-term business partner.