Germany and Indonesia strengthen cooperation on trade, investment, and energy transition
GAS INDUSTRY NEWS
Katriana | Dewa Ketut Sudiarta Wiguna (Bali Antara News)
6/16/2026
The German and Indonesian governments strengthened partnerships in the fields of trade, investment and sustainable energy transition during the visit of the President of the Federal Republic of Germany Frank-Walter Steinmeier in Jakarta, Monday (15/6).
"There are very strong reasons that make me come back here today, where the world seems to be divided and distrust, power politics and violence are on the rise in many places," said Steinmeier in a statement quoted by the German Embassy in Jakarta, Tuesday (16/6).
Steinmeier said a trustworthy partnership between the two countries was essential. Therefore, he said he was happy that both parties could agree to strengthen partnerships, not only at the political level, but also in the fields of economics, skilled labor, climate, science and culture.
Meanwhile, German Ambassador to Indonesia Ralf Beste stated that strengthening relations was carried out amidst rapid changes in the world order. With the Comprehensive Economic Partnership Agreement between Indonesia and the European Union (I-EU CEPA), he estimates that there will be an increase in exports and investment in two directions: to Germany and Indonesia.
“The recent surge in global oil and gas prices also shows that we need a transition to renewable energy not only to protect the climate, but also to ensure energy security” he said.
According to him, the Just Energy Transition Partnership (JETP), which is jointly led by the two countries, also contributes to strengthening relations between the two countries.
Recently, two financial agreements between Indonesia and a number of German institutions have been agreed. The agreements are aimed at improving conditions for increasing trade and investment and accelerating the transition to renewable energy in a fair manner.
The first agreement focuses on improving conditions to increase economic growth and investment with a value of 400 million euros (around Rp. 8.2 trillion). The agreement was signed by the German Development Bank KfW and the Indonesian Ministry of Finance, under the Competitiveness, Investment, and Trade Acceleration (CITA) Program.
The program is designed to support Indonesia's economic reform agenda to achieve sustainable and inclusive economic development, in accordance with international trade and investment standards.
The second agreement is to support the development of renewable power plants and electricity networks with a value of 302 million US dollars (around Rp. 5.35 trillion). The agreement was signed by KfW and PT PLN (Persero), under the auspices of the Accelerating Indonesia's Clean Energy Transition Program.
The program is designed to accelerate Indonesia's energy transition by encouraging the integration of renewable energy development through improving electricity network infrastructure as well as expanding solar and wind power.
Apart from that, the program is also to ensure the implementation of environmental guarantees and a just transition for all stakeholders.
The program is Germany's contribution to the Just Energy Transition Partnership (JETP) with Indonesia, where Germany has taken over joint leadership of the International Partners Group (IPG) with Japan, since early 2025.
Germany, according to the statement, has committed to allocating around 1 billion euros (around Rp. 20.5 trillion) for development cooperation in 2026.
In February 2026, two other financial agreements were approved and witnessed by the Coordinating Minister for Economic Affairs Airlangga Hartarto, as well as the Director General for Asia, Southeast and Eastern Europe, the Middle East and Latin America of the German Federal Ministry for Economic Cooperation and Development (BMZ), Christine Toetzke.
The agreement is related to the Green Energy Corridors Sulawesi (GECS) and Green Bond Development Facility (GBDF) projects with a total value of 308 million euros (around Rp. 6.33 trillion).
The Green Energy Corridors Sulawesi (GECS) project will build a 275kV transmission line across South Sulawesi to unlock the region's extensive renewable energy potential. Meanwhile, the Green Bond Development Facility (GBDF) strengthens Indonesia's green bond market to attract sustainable investment.
The German and Indonesian governments strengthened partnerships in the fields of trade, investment and sustainable energy transition during the visit of the President of the Federal Republic of Germany Frank-Walter Steinmeier in Jakarta, Monday (15/6).
"There are very strong reasons that make me come back here today, where the world seems to be divided and distrust, power politics and violence are on the rise in many places," said Steinmeier in a statement quoted by the German Embassy in Jakarta, Tuesday (16/6).
Steinmeier said a trustworthy partnership between the two countries was essential. Therefore, he said he was happy that both parties could agree to strengthen partnerships, not only at the political level, but also in the fields of economics, skilled labor, climate, science and culture.
Meanwhile, German Ambassador to Indonesia Ralf Beste stated that strengthening relations was carried out amidst rapid changes in the world order. With the Comprehensive Economic Partnership Agreement between Indonesia and the European Union (I-EU CEPA), he estimates that there will be an increase in exports and investment in two directions: to Germany and Indonesia.
“The recent surge in global oil and gas prices also shows that we need a transition to renewable energy not only to protect the climate, but also to ensure energy security” he said.
According to him, the Just Energy Transition Partnership (JETP), which is jointly led by the two countries, also contributes to strengthening relations between the two countries.
Recently, two financial agreements between Indonesia and a number of German institutions have been agreed. The agreements are aimed at improving conditions for increasing trade and investment and accelerating the transition to renewable energy in a fair manner.
The first agreement focuses on improving conditions to increase economic growth and investment with a value of 400 million euros (around Rp. 8.2 trillion). The agreement was signed by the German Development Bank KfW and the Indonesian Ministry of Finance, under the Competitiveness, Investment, and Trade Acceleration (CITA) Program.
The program is designed to support Indonesia's economic reform agenda to achieve sustainable and inclusive economic development, in accordance with international trade and investment standards.
The second agreement is to support the development of renewable power plants and electricity networks with a value of 302 million US dollars (around Rp. 5.35 trillion). The agreement was signed by KfW and PT PLN (Persero), under the auspices of the Accelerating Indonesia's Clean Energy Transition Program.
The program is designed to accelerate Indonesia's energy transition by encouraging the integration of renewable energy development through improving electricity network infrastructure as well as expanding solar and wind power.
Apart from that, the program is also to ensure the implementation of environmental guarantees and a just transition for all stakeholders.
The program is Germany's contribution to the Just Energy Transition Partnership (JETP) with Indonesia, where Germany has taken over joint leadership of the International Partners Group (IPG) with Japan, since early 2025.
Germany, according to the statement, has committed to allocating around 1 billion euros (around Rp. 20.5 trillion) for development cooperation in 2026.
In February 2026, two other financial agreements were approved and witnessed by the Coordinating Minister for Economic Affairs Airlangga Hartarto, as well as the Director General for Asia, Southeast and Eastern Europe, the Middle East and Latin America of the German Federal Ministry for Economic Cooperation and Development (BMZ), Christine Toetzke.
The agreement is related to the Green Energy Corridors Sulawesi (GECS) and Green Bond Development Facility (GBDF) projects with a total value of 308 million euros (around Rp. 6.33 trillion).
The Green Energy Corridors Sulawesi (GECS) project will build a 275kV transmission line across South Sulawesi to unlock the region's extensive renewable energy potential. Meanwhile, the Green Bond Development Facility (GBDF) strengthens Indonesia's green bond market to attract sustainable investment.
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