Airlangga Reveals German Investment Potential in Indonesia, Here Are the Sectors
Coordinating Minister for Economic Affairs Airlangga Hartarto revealed a number of investment opportunities for German companies in Indonesia, one of which is a renewable energy project included in the cooperation pipeline between the two countries.
This was conveyed by Airlangga after a meeting with German Development Minister Reem Alabali Radovan, accompanied by a German business delegation. In addition to renewable energy, opportunities for cooperation in semiconductors and vocational education were also discussed.
“And of course, for Indonesia, the supply chain related to semiconductors is also important, and this was discussed. Another matter we discussed was vocational education, which is also important for both Indonesia and Germany,” said Airlangga at a press conference at the Coordinating Ministry for Economic Affairs in Central Jakarta on Thursday (20/8/2026).
Airlangga noted that Germany has become Indonesia’s partner in developing vocational education. On the investment side, more than 250 German companies are already doing business and operating in Indonesia. Cumulative German investment in Indonesia for the 2021–2026 period reached US$1.23 billion.
“Germany is strong in vocational training and has become Indonesia’s partner, with more than 250 companies already doing business and operating in Indonesia, with cumulative investment from 2021 to 2026 of US$1.23 billion,” Airlangga explained.
During the meeting, both parties also discussed the completion of the Indonesia–European Union Comprehensive Economic Partnership Agreement (EU-CEPA). Airlangga expressed hope that the free trade agreement between Indonesia and the European Union could be signed this year.
In addition, Germany is one of Indonesia’s strategic partners in the Just Energy Transition Partnership (JETP). Germany serves as co-lead of the International Partners Group (IPG) alongside Japan in the programme.
Airlangga said the total projects receiving funding commitments through JETP reached US$21.4 billion. To date, Indonesia has utilised approximately US$3.93 billion, or nearly US$4 billion.
Meanwhile, Radovan said the renewable energy sector is indeed one of the areas German companies are looking at for investment in Indonesia. German companies, Radovan noted, have experience and technology that can support the development of renewable energy in Indonesia.
“German companies bring extensive experience and technology, and I think this is very important; we also have projects that bring together academics as well as the public and private sectors,” Radovan said.