Germany and Indonesia: Bilateral relations

05.03.2024 - Article

Relations focus on promoting economic ties, global issues such as climate action, sustainable development strategies, Germany’s assistance in reforming the Indonesian vocational training sector, and multilateral cooperation. The Just Energy Transition Partnership (JETP) between Indonesia and the G7+ was launched in November 2022 with a view to accelerating the Indonesian energy transition.

As the largest members, respectively, of the European Union and the Association of Southeast Asian Nations (ASEAN) – whose Chairmanship Indonesia held in 2023 – the two countries connect on numerous regional policy issues.

Indonesia is home to the world’s second-largest Muslim population, making it an important partner in dialogue on religious issues and the prevention of radicalisation.

Bilateral trade fell slightly in 2023, from 8.4 to 8.0 billion euro, although German exports to Indonesia rose slightly from 3.0 to around 3.4 billion euro (primarily driven by machinery and vehicles). There has been no investment protection agreement in place since 2017; an EU-Indonesian free trade agreement is currently being negotiated. The German Government held talks with Indonesia on the fringes of the 2023 Hannover Messe on the creation of a mixed business and investment committee. The first meeting is planned for mid-2024. Indonesia’s role in the field of climate and environment is globally relevant – not only because of its extensive forests, mangroves, peatlands and marine ecosystems and its rich biodiversity, but also because it is one of the world’s largest emitters of greenhouse gases, in particular from the energy sector. Indonesia has committed to the goals of the Paris Agreement. The energy sector will play a decisive role in Indonesia’s ability to achieve its NDC (Nationally Determined Contribution). Germany is one of Indonesia’s leading development partners. The focus in this area is on promoting renewable energies, developing climate-friendly infrastructure, conserving forests, digitalisation and vocational training.

For years Germany has been one of the top choices for Indonesian students wanting to study abroad. The German language also remains very popular, with around 150,000 people in Indonesia currently learning it.

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