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Germany expects cooperation with Indonesia to expand and intensify in the coming years, particularly in the areas of renewable energy and raw materials, the federal economy ministry . Minister Robert Habeck said Germany and Indonesia had agreed to set up a joint economic and investment committee, where government and business representatives meet regularly to strengthen economic ties.聽Indonesia not only plans to invest heavily in the expansion of renewable energy but also 鈥渉as a large number of raw materials that can represent an important building block for successfully managing the energy transition in Germany and Europe,鈥� the economy ministry noted, stressing the country鈥檚 importance in 鈥渢he dynamic Indo-Pacific region, especially against the background of diversification efforts.鈥� Attending the Hannover Messe industry fair with Indonesian President Joko Widodo, chancellor Olaf Scholz said Germany was already Indonesia's key trading partner in Europe and that the countries鈥� economic relationship for companies to further diversify supply relationships and become more independent of individual suppliers or countries.

Indonesia鈥檚 efforts towards climate neutrality posed a challenge and an opportunity for companies, Scholz was quoted by the He also stressed his commitment to a free trade agreement between the EU and Indonesia. Widodo said the restructuring of industry had to be accelerated "for a better world." The German government announced plans last year to support climate and environmental protection projects in Indonesia with loans of 2.5 billion euros. Indonesia, the fourth most populous country in the world, has been a key partner in German development projects for several years. The G7, Norway and Denmark have also promised to mobilise 20 billion dollars in support for Indonesia to speed up its energy transition as part of a so-called Just Energy Transition Partnership (JETP).