Germany Sees Indonesia as Attractive Investment Destination, Here's Why
German Ambassador to Indonesia Ralf Beste has emphasised that Indonesia remains an attractive destination for German investors despite global economic and geopolitical uncertainty. He stated that the German government and businesses view Indonesia as a country with significant potential to deepen economic relations, both through trade and investment. “Generally, we see Indonesia as a country with enormous potential for more intensive economic relations. German companies want to invest if the right opportunities are available in Indonesia,” Beste said during a press conference at the German Embassy in Jakarta on Friday (12/6/2026).
The remarks were made ahead of German President Frank-Walter Steinmeier’s visit to Indonesia on 15 June, where he is scheduled to meet President Prabowo Subianto. Steinmeier will be accompanied by a business delegation from sectors including logistics, labour mobility, digitalisation, and manufacturing.
Beste also noted that Germany is keen to encourage more Indonesian investment into Germany, with the government creating new investment opportunities for Indonesian companies. He stressed that investment is not solely about capital flows but also involves the transfer of technology and expertise. A greater presence of Indonesian businesses in Germany, and vice versa, is expected to strengthen bilateral cooperation.
Beyond investment, Beste underscored the importance of bolstering trade ties, which currently stand at approximately US$7 billion. He expressed optimism that the implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) would serve as a new catalyst for increased trade and investment. Beste noted broad support for the agreement in both Europe and Indonesia, and if ratified as planned by 2027, around 98% of tariff lines would be reduced to zero within a decade. He believes the deal will enhance business confidence by providing greater certainty for investors and traders. Currently, hundreds of German companies operate in Indonesia, with some already using the country as a production base to serve the Southeast Asian market.