Indonesia and Germany Accelerate Negotiations for IEU-CEPA Trade Agreement

INTI,- Efforts to strengthen bilateral cooperation between Indonesia and Germany continue to be carried out to boost the national economy. During the Hannover Messe 2023 event, Indonesia held a bilateral meeting with Germany, which was received by Chancellor Olaf Scholz. The meeting discussed, among others, joint investment and economic cooperation, including accelerating the negotiations of the IEU-CEPA agreement.

The Joint Declaration of Intent (JDoI) on bilateral cooperation between Indonesia and Germany was signed by the two countries' economic ministers, Airlangga Hartarto and Robert Habeck, respectively. The signing of the JDoI aims to strengthen economic cooperation and enhance investment flows between the two countries.

The IEU-CEPA agreement, which is currently being negotiated, is expected to provide a framework for stronger economic ties and mutual benefits for both countries. The agreement will cover various sectors, including trade in goods and services, investment, intellectual property rights, and sustainable development.

The JDoI also includes cooperation in the fields of renewable energy, environmental protection, and climate change mitigation. This cooperation will support Indonesia's efforts to reduce its greenhouse gas emissions and promote sustainable development.

During the meeting, Chancellor Scholz expressed his support for Indonesia's efforts to develop its digital economy and welcomed opportunities for German businesses to invest in Indonesia. He also praised Indonesia's progress in the renewable energy sector, which aligns with Germany's commitment to a sustainable and carbon-neutral future.

Minister Hartarto, in his remarks, emphasized the importance of strengthening Indonesia's economic ties with Germany. He highlighted the significant potential for cooperation in various sectors, including automotive, healthcare, and digital economy. He also reiterated Indonesia's commitment to a sustainable and green economy, which he believes is essential for future growth and development.

The meeting between Indonesia and Germany was a positive step towards strengthening bilateral cooperation and enhancing economic ties between the two countries. The signing of the JDoI and the acceleration of the IEU-CEPA agreement are expected to further deepen economic cooperation and promote investment flows between Indonesia and Germany.

Germany is Indonesia's largest trading partner in Europe, with bilateral trade amounting to USD 10.7 billion in 2022. There are over 250 German companies operating in Indonesia, with a total investment of over USD 10 billion. Indonesia's vast market potential and strategic location make it an attractive destination for German businesses looking to expand their operations in Southeast Asia.

Indonesia, on the other hand, sees Germany as an important partner in its efforts to develop its manufacturing and digital economy sectors. Germany's expertise in engineering, advanced manufacturing, and digital technologies can support Indonesia's efforts to upgrade its industries and enhance its competitiveness.

In conclusion, the meeting between Indonesia and Germany during Hannover Messe 2023 was a significant step towards enhancing bilateral cooperation and promoting economic ties between the two countries. The signing of the JDoI and the acceleration of the IEU-CEPA agreement are expected to bring mutual benefits and foster closer ties between Indonesia and Germany in various sectors, including trade, investment, and sustainable development.***Hans.