Meeting with the President of Germany, Prabowo Offers EV and Semiconductor Investments

President Prabowo receiving German President Frank-Walter Steinmeier. (Teddy Kurniawan VOI)

JAKARTA - President Prabowo Subianto opened wider investment opportunities for Germany in Indonesia's strategic sectors, ranging from electric vehicles (EV), semiconductor industries, natural resource downstreaming, to renewable energy.

The offer was made by Prabowo when he received German President Frank-Walter Steinmeier during a state visit at the Merdeka Palace, Jakarta, Monday, June 15.

Amid global competition to dominate future technologies and supply chains of strategic industries, Indonesia is seeking to attract more foreign investment that can provide added value, not just buying raw materials.

Prabowo said the government invited Germany to expand investment in important sectors that were a priority for national development.

"We invite the German party to expand investment in important sectors in Indonesia. An example in the energy transition sector, in the industrial downstream sector, in the vehicle sector because we will move towards electric vehicles, as well as the development of the semiconductor industry," said Prabowo.

Besides electric vehicles and semiconductors - namely the main components that are the "brains" of various modern electronic devices - Indonesia also offers opportunities for cooperation in the supply chain of critical minerals and rare earths needed for clean energy technologies and high-tech industries.

Prabowo said Indonesia also opened the opportunity for German involvement in the development of various infrastructure projects.

Economic cooperation between the two countries is not only targeting large companies. The Indonesian government also welcomes the Partnering in Business with Germany program which aims to increase the capacity and business opportunities of micro, small, and medium enterprises (MSMEs).

Indonesia is also scheduled to host the second meeting of the Joint Economic and Investment Committee this year as a forum to strengthen trade and investment cooperation between the two countries.

In addition to the industrial sector, Prabowo appreciated the signing of a Letter of Intent regarding the Global Skills Partnership in the field of nursing. Indonesia also hopes that employment opportunities for Indonesian workers in Germany can be expanded, including in the high technology sector.

President Steinmeier's visit to Indonesia comes as Jakarta and Berlin seek to strengthen economic ties amid a changing global industrial map and the need for more diverse and secure supply chains.