Antara News·Indonesia·Thursday, November 12, 2026 at 05:14 PM UTC

Germany urges RI to cut tariffs, expand investment in industry, energy

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Jakarta (ANTARA) - German Ambassador to Indonesia Ralf Beste said reducing trade tariffs was a key factor in encouraging more German companies to invest in Indonesia, particularly in downstream processing industries, critical minerals, and renewable energy.

"I think lowering tariffs makes it a lot easier for German competitive products to enter Indonesian market, which would be an opening for more cooperation," Ambassador Beste said in an exclusive interview with ANTARA in Jakarta on Thursday.

Beste said Germany had a strong interest in expanding cooperation with Indonesia, particularly in diversifying access to essential raw materials and developing value-added industries.

He said the implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which is expected to take effect next year, would facilitate trade access for both sides through significant tariff reductions.

Under the agreement, nearly 89 percent of tariff lines between the two parties will be eliminated, Beste said. Germany had a strong manufacturing base and advanced technological capabilities that could support Indonesia's industrial development, he added.

Germany was also ready to invest and cooperate in the utilization of critical minerals and the energy transition.

Beste noted German companies had been involved in the development of various renewable energy power plants and electricity networks in Indonesia. However, there was still considerable room to expand such cooperation.

Furthermore, Beste said the IEU-CEPA could serve as a platform for addressing various trade barriers, including non-tariff barriers, while creating a more conducive investment climate for companies from both sides.

He said investment cooperation should not be limited to free trade zones and special economic zones, such as Batam, but also be expanded to other regions across Indonesia.

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