German President Says Indonesia Increasingly Attractive as Investment Destination

President of the Federal Republic of Germany Frank-Walter Steinmeier has expressed optimism regarding the conclusion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations, which have been ongoing for years. He stated the agreement would unlock significant opportunities for increased trade, investment, and economic cooperation between Indonesia and EU member states. Steinmeier made the remarks during a joint press statement with President Prabowo Subianto following a bilateral meeting at Merdeka Palace in Jakarta on Monday (15/6/2026). The German President emphasised that Berlin and Jakarta share a common interest in creating a stronger and mutually beneficial economic and trade framework. “Indonesia and Germany also have a shared desire to establish a good framework for trade and the economy. We hope the Indonesia-Europe CEPA agreement, whose negotiations are concluded after a long time, will finally be signed,” Steinmeier said. He explained that the implementation of the agreement could potentially eliminate most tariff barriers on trade between Indonesia and the European Union, thereby boosting trade flows for both parties. “And with that, up to 90 percent of customs duties will be abolished. And we in Germany also feel a continued responsibility to ratify this agreement promptly,” he added. According to Steinmeier, the benefits of IEU-CEPA will not only be felt by large corporations but will also open wider opportunities for small and medium-sized enterprises to expand their cross-border business activities and investments. “This agreement contains enormous potential, enabling new investments and also providing opportunities for small and medium-sized companies from Germany, paving the way for them to invest in Indonesia,” he said. He assessed that the trade deal would serve as a foundation for increased economic growth while strengthening collaboration between Indonesian and German businesses, particularly in the development of innovation and research. “And also increased economic growth, and closer cooperation between German and Indonesian companies in the fields of innovation and research,” Steinmeier continued. The German President affirmed that strengthening economic ties would benefit both nations. He noted that Indonesia and Germany have great opportunities to expand their well-established partnership. “And Your Excellency, I believe this is advantageous for both parties, for both our countries,” he stated. Steinmeier also highlighted the presence of several German companies that have long operated in Indonesia. The presence of these companies, he said, is proof that Indonesia is increasingly viewed as a promising investment destination, not merely a market for foreign products. “For a long time, several German companies have been present in the market and in Indonesia: Siemens, Daimler, Infineon, and others. This shows that Indonesia is not only an increasingly attractive market but is also becoming a location for investment,” Steinmeier said. He added that the high interest of the German business community in Indonesia is also reflected in the composition of the delegation accompanying him on this state visit. A number of top executives from major companies across various industrial and manufacturing sectors joined to explore broader cooperation opportunities. “This is also reflected in the delegation accompanying me, comprising very large and important companies from various economic and production fields,” he concluded.