Kadin confident German investors enthusiastic about boosting investment in Indonesia
Jakarta (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) is confident that German investors’ interest in increasing investment in the country remains high, given the opening of economic cooperation opportunities, particularly following the implementation of the Indonesia-European Union Comprehensive Economic and Partnership Agreement (IEU-CEPA).
This confidence was expressed by the General Chair of Kadin Indonesia, Anindya Bakrie, after attending the Indonesia-Germany Economic Dialogue with the Minister of State for the German Federal Foreign Office and the Germany Business Dialogue, held during the visit of German President Frank-Walter Steinmeier to Jakarta on Monday.
In a written statement, Anindya noted that German business actors are showing great enthusiasm to expand economic relations with Indonesia, specifically to capitalise on the various opportunities that will arise once IEU-CEPA comes into effect.
“There is a visible and significant desire to, firstly, trade and utilise IEU-CEPA; they are very enthusiastic, and we are certainly very enthusiastic as well,” said Anindya.
Beyond trade, the discussed cooperation also encompasses the development of strategic industrial sectors. According to Anindya, opportunities for collaboration are open ranging from the processing of critical minerals and energy transition to the development of more advanced manufacturing technologies.
“Secondly, regarding industrialisation, discussions covered everything from critical minerals and energy transition to advanced manufacturing,” he added.
Anindya further noted that, in addition to expanding trade relations, German parties have shown a desire to increase foreign direct investment (FDI) in Indonesia. Simultaneously, both nations have the opportunity to expand labour cooperation through worker exchange programmes.
Meanwhile, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the meeting serves as a follow-up to the meeting between Indonesian President Prabowo Subianto and the German President at the Merdeka Palace.
According to Airlangga, the German business delegation specifically sought to identify economic opportunities that can be developed following the implementation of IEU-CEPA.
He added that Germany also expressed appreciation for the quality of Indonesia’s human resources.
Airlangga revealed that both countries plan to further discuss labour placement and training programmes during the Joint Commission on Industry and Economy, which is scheduled to take place this coming September.
In addition to labour issues, the German delegation also showed interest in investment opportunities within Indonesia’s strategic mineral sectors, including rare earth elements and nickel.
Nevertheless, Airlangga emphasised that any industrial cooperation developed must continue to take global market conditions into account, including the excess production capacity of steel in Europe.