Germany´s Federal President Frank-Walter Steinmeier was welcomed by President of the Republic of Indonesia Prabowo Subianto on 15 June 2026 at the Merdeka Palace in Jakarta. Both Heads of States exchanged on deepening political and cultural relations, further strengthening economic ties and to accelerate Indonesia´s transition to renewable energies together.

Frank-Walter Steinmeier, President of the Federal Republic of Germany, expressed his appreciation for the close bilateral relationship at Merdeka Palace: “The reasons for my being here again today are significant. In a time when the world seems to be coming apart at the seams, and mistrust, power politics, and violence are on the rise in many places, a reliable partnership like the one between Indonesia and Germany – two countries that uphold the international rule of law – is more important than ever. I am pleased that we agree that this partnership must be further deepened, and not only on a political level, but also in the areas of economy, skilled workers, climate, science, and culture.”

Ralf Beste, German Ambassador to Indonesia said “Germany and Indonesia strengthen their ties in atime of rapid changes in the world order. With the EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA), we expect more exports and investments to go in both directions: to Germany and Indonesia. The latest global price shock for oil and gas also shows that we need a transition to renewable energy not only to protect the climate, but also to provide for energy security. The Just Energy Transition Partnership (JETP) which is jointly chaired by our two countries is contributing to this.”

Recently two financial agreements between Indonesia and German entities materialised. They improve the conditions for more trade and investment and accelerate the transition to renewables in a just manner. The first agreement focusses on improving growth and investment conditions and amounts of EUR 400 million. It was signed by German Development Bank KfW and Indonesia’s Ministry of Finance, under the Competitiveness, Investment, and Trade Acceleration (CITA) program. The program is structured to support Indonesia’s economic reform agenda toward sustainable and inclusive economic development, in line with international trade and investment standards. The reform will focus on three main areas: 1) creating an investment friendly business environment; 2) reducing trade barriers; 3) enhancing business growth and scaling up of enterprises.

The second agreement fosters the build-up of renewable power plants and grids with an amount of USD 302 million. It was signed by KfW and Indonesia’s state-owned electricity company, PT PLN (Persero) under the “Accelerating Indonesia’s Clean Energy Transition” Program. This program is designed to accelerate Indonesia’s energy transition by promoting renewable energy development integration through grid infrastructure enhancements and the expansion of solar and wind energy, while ensuring the implementation of environmental safeguards and just transition for all stakeholders. This program is a contribution of Germany to the Just Energy Transition Partnership (JETP) with Indonesia, where Germany has assumed co-leadership of the International Partners Group alongside Japan, starting in early 2025.

Germany has committed in total around EUR 1 billion of development cooperation in the year 2026, which equivalents around 20 trillion IDR.

Back in February 2026, two further financial agreements had been endorsed and witnessed by Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and Director General for Asia, South Eastern and Eastern Europe, Middle East, and Latin America from the German Federal Ministry for Economic Cooperation and Development (BMZ), Christine Toetzke.

These were for the projects Green Energy Corridors Sulawesi (GECS) and Green Bond Development Facility (GBDF) with a total amount of EUR 308 Million. The Green Energy Corridors Sulawesi (GECS) project will construct a 275kV transmission line across South Sulawesi to unlock the region’s vast renewable energy potential. Meanwhile, the Green Bond Development Facility (GBDF) strengthens Indonesia’s green bond market to attract sustainable investment. Together, these initiatives mark an important milestone in JETP implementation, translating partnership commitments into concrete action and measurable progress toward Indonesia’s clean energy future.