Germany Country Profile

INDONESIA’S INTERNATIONAL PARTNERS
COUNTRY REPORT: FEDERAL REPUBLIC OF GERMANY

CREATED ON July 7, 2011
Updated On March 11, 2022
1. General Information
As Europe's largest economy and second most populous nation (after Russia), Germany is
a key member of the continent's economic, political, and defense organizations. European power
struggles immersed Germany in two devastating world wars in the first half of the 20th century and
left the country occupied by the victorious Allied powers of the US, UK, France, and the Soviet Union
in 1945. With the advent of the Cold War, two German states were formed in 1949: the western
Federal Republic of Germany (FRG) and the eastern German Democratic Republic (GDR). The dem-
ocratic FRG embedded itself in key western economic and security organizations, the EC (now the
EU) and NATO, while the communist GDR was on the front line of the Soviet-led Warsaw Pact. The
decline of the USSR and the end of the Cold War allowed for German reunification in 1990. Since
then, Germany has expended considerable funds to bring eastern productivity and wages up to
western standards. In January 1999, Germany and 10 other EU countries introduced a common
European exchange currency, the euro.
The German economy - the fifth largest economy in the world in PPP terms and Europe's
largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment. Ger-
many benefits from a highly skilled labor force, but, like its Western European neighbors, faces sig-
nificant demographic challenges to sustained long-term growth. Low fertility rates and a large in-
crease in net immigration are increasing pressure on the country's social welfare system and neces-
sitate structural reforms.
KADIN BSD | COUNTRY REPORTS | FEDERAL REPUBLIC OF GERMANY | MARCH 11, 2022 Page 1 of 9
Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005),
deemed necessary to address chronically high unemployment and low average growth, contributed
to strong economic growth and falling unemployment. These advances, as well as a government
subsidized, reduced working hour scheme, help explain the relatively modest increase in unemploy-
ment during the 2008-09 recession - the deepest since World War II. The German Government in-
troduced a minimum wage in 2015 that increased to $9.79 (8.84 euros) in January 2017.
Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in
Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including fed-
eral, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced
the deficit to 0.8% in 2011 and in 2017 Germany reached a budget surplus of 0.7%. A constitutional
amendment approved in 2009 limits the federal government to structural deficits of no more than
0.35% of GDP per annum as of 2016, though the target was already reached in 2012.
Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL an-
nounced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immedi-
ately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely
with renewable energy, which accounted for 29.5% of gross electricity consumption in 2016, up
from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for
23% of its electricity generating capacity and 46% of its base-load electricity production.
The German economy suffers from low levels of investment, and a government plan to in-
vest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private
investment. Domestic consumption, investment, and exports are likely to drive German GDP growth
in 2018, and the country’s budget and trade surpluses are likely to remain high.
Data source taken directly from: CIA World Fact Book - https://www.cia.gov/library/publications/re-
sources/the-world-factbook/index.html
2. Country Factsheet
1. Capital Berlin
2. Official Language German
3. Chief of State President Frank-Walter STEINMEIER (since 19 March 2017)
4. Head of the Government Chancellor Olaf SCHOLZ (since 8 December 2021)
5. Governor of the Central Bank Joachim Nagel
6. Indonesian Ambassador to Germany H.E. Arif Havas Oegroseno
7. German Ambassador to Indonesia H.E. Ina Lepel
8. Total Area 357,022 sq km (land: 348,672 sq km; water: 8,350 sq km)
9. Coastline 2,389 km
10. Population 79,903,481 (July 2021 est.)
11. Total Trade with Indonesia 2020: USD 5,480,178,200
2021: USD 6,907,554,800
2022 (Jan-Jan): USD 576,130,000
12. Exports to Indonesia 2020: USD 3,023,873,400
2021: USD 3,187,612,700
2022 (Jan-Jan): USD 285,247,900
13. Imports from Indonesia 2020: USD 2,456,304,700
2021: USD 2,909,942,100
2022 (Jan-Jan): USD 290,882,200
14. Trade Balance 2020: USD 567,568,700 Surplus for Germany
2021: USD 277,670,600 Surplus for Germany
2022 (Jan-Jan): USD 5,634,300 Deficit for Germany
15. Trading Rank in the World (2020) Germany is Indonesia’s 13rd largest trading partner in the world
16. Investment in Indonesia 2020: 1,008 projects with Value of Investment USD 143.6 Million (16th)
2021: 515 projects with Value of Investment USD 182.3 Million (16th)
17. Total GDP 2019: USD 3.888 Trillion USD
USD 4.624 Trillion USD (PPP)
2020: USD 3.846 Trillion USD
USD 4.561 Trillion USD (PPP)
18. GDP per capita 2019: USD 46,794.899
USD 55,652.887 (PPP)
2020: USD 46,208.429
USD 54,792.064 (PPP)
19. GDP Growth 2019: 1.0%
2020: -4.57%
20. Rank of Economy – Global (2020) Germany is the 4th largest economy in the world (based on GDP)
21. Currency EURO
22. Main Export Commodities to Indo- Machinery and mechanical appliances, Optical photographic and cine-
nesia matographic, Electrical machinery, Vehicles other than railway, Miscel-
laneous chemical products, Plastics and articles thereof.
23. Main Export Partners US 8.6%, China 8%, France 7.5%, Netherlands 6.5%, UK 5.6% (2020)
24. Main Import Commodities from Footwear, gaiters, Machinery, Articles of apparel and clothing not knit-
Indonesia ted or crocheted, Ores, slag, and ash, Articles of apparel and clothing ac-
cessories, knitted or crocheted, Electrical machinery
25. Main Import Partners China 11.4%, Netherlands 7.5%, US 6.6%, Poland 5.7%, France 5.5%
(2020)
26. International Organization ADB (nonregional member), AfDB (nonregional member), Arctic Council
memberships (observer), Australia Group, BIS, BSEC (observer), CBSS, CD, CDB, CE,
CERN, EAPC, EBRD, ECB, EIB, EITI (implementing country), EMU, ESA, EU,
FAO, FATF, G-5, G-7, G-8, G-10, G-20, IADB, IAEA, IBRD, ICAO, ICC (na-
tional committees), ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IGAD (part-
ners), IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU,
ITUC (NGOs), MIGA, MINURSO, MINUSMA, NATO, NEA, NSG, OAS (ob-
server), OECD, OPCW, OSCE, Pacific Alliance (observer), Paris Club, PCA,
Schengen Convention, SELEC (observer), SICA (observer), UN, UNAMID,
UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNMISS, UNRWA, UNWTO,
UPU, WCO, WHO, WIPO, WMO, WTO, ZC
3. Political and Economic Relations

Political Relations
The relations between Indonesia and Germany can be traced back to 1952 when diplomatic relations
were first established. The relationship was marked by the establishment of a Permanent Mission Office in
Bonn and a Consulate in the same year. It was then followed by the establishment of the Indonesian Embassy
in Bonn in 1954. In 1973, Indonesia also established its Office of the Permanent Mission to the Democratic
Republic of Germany in East Berlin, which subsequently became an Embassy in 1976.
Indonesia and Germany have a good and close bilateral cooperation. In the governmental sector, Ger-
many has provided assistance in the formulation and implementation of regional autonomy, good governance
(eradicating corruption and citizenship administration), diplomatic training, competition law reform, capacity
building in strengthening democratic institutions such as for parliament, journalists, legislature (Constitutional
Court / Supreme Court) and NGOs.
In recent years, there has been a further increase in mutual interest. As the largest members of the
European Union and the Association of Southeast Asian Nations (ASEAN), respectively, Germany and Indone-
sia take similar positions on many issues relating to the development of the two regional organizations.
The visit to Jakarta by Federal Foreign Minister Frank-Walter Steinmeier in early November 2014 bore
eloquent testimony to the quality of bilateral relations. Taking place just a few days after the inauguration of
Indonesia’s new President Joko Widodo and the appointment of the new government, the visit offered the
opportunity to gain first-hand information about the government’s plans in talks with the President and For-
eign Minister Retno Marsudi and to jointly put this in the context of the two countries’ wide-ranging relations.
A first meeting between President Widodo and Federal Chancellor Merkel took place in November 2014 on
the sidelines of the G20 Summit in Brisbane.
As the country with the world’s largest Muslim population, Indonesia is a major partner of Germany
in dialogue on religious issues. The fourth German-Indonesian Interfaith and Intercultural Dialogue between
representatives of the two countries’ governments and numerous civil-society organizations and religious
communities was held in September 2015 in Berlin. A wide-ranging series of events entitled JERIN – Jerman
dan Indonesia was held to celebrate the 60th anniversary of the establishment of diplomatic relations be-
tween the two countries. Lasting from October 2011 to June 2012 and featuring some 120 public events in
more than 15 Indonesian cities, JERIN showcased the breadth of Germany’s engagement in Indonesia. In view
of its overwhelming success, JERIN was continued in 2013 as a platform for bilateral relations in the political,
cultural, scientific, academic and economic spheres.
Germany supports the Indonesian government’s ongoing reform efforts with a wide range of projects
designed to ensure good governance and strengthen administrative structures. The Federal Government
Commissioner for Human Rights Policy and Humanitarian Aid, Christoph Strässer, visited Jakarta and Papua
Province in September 2015.
In April 2016, Indonesia and Germany have agreed to cooperate in vocational education when the
President Joko Widodo and German Chancellor Angela Merkel hold bilateral meeting in Germany. In a joint
press conference with German Chancellor Angela Merkel at the Bundeskanzleramt, President Joko Widodo
said his working visit to Germany focused on cooperation on vocational education between the two countries,
The President added that Germany was one of Indonesia's most important partners in Europe.
Economic Relations
There are currently some 300 German companies operating in Indonesia, many with their own pro-
duction facilities. They include not only global players but also many small and medium-sized companies cov-
ering a broad section of German business.
The German-Indonesian Chamber of Industry and Commerce (EKONID, a member of the German
Chamber Network) represents the interests of its more than 500 corporate members and promotes bilateral
trade and investment between Indonesia and Germany. EKONID offers consulting on market development to
German and Indonesian companies, supports them in their efforts to establish business relations and works
together closely with partner organizations from Indonesia and Europe. German business delegations fre-
quently visit Jakarta. Most of these trips are made by specialised sector-specific delegations (e.g. packaging
industry, medical technology, marine technology) or by delegations accompanying high-ranking political visi-
tors.
Germany is one of the major trade partners of Indonesia in Europe. The total trade between Indonesia
and Germany in 2017 amounted to USD 6,206 million, and it increased in 2018 to USD 6,681 million. In 2017,
the investment value of Germany in Indonesia reached USD 289.0 million with 367 projects. In 2018, the in-
vestment value of Germany in Indonesia reached USD 280.42 million with 361 projects.
Revitalization of German Indonesia Forum (GIF): GIF is a forum aimed at improving Indonesia-Ger-
many economic cooperation through the participation of private sectors. The forum was facilitated by the
governments of both countries. After the 2001 meeting, the forum has remained inactive until now. During a
bilateral meeting, the President of Indonesia and the Chancellor of Germany agreed to revitalize the role of
GIF to support the joint efforts to improve the bilateral relationship/cooperation in trade and investment
sectors [GIF has largely been replaced by the European initiative of the EU-Indonesia Business Dialogue (EIBD)
in 2009].
In 2014, Indonesian exports to Germany increased slightly by 0.4 per cent, to approximately EUR 3.6
billion. Indonesia’s main exports to Germany are food and animal feedstuffs (in particular vegetable oils and
fats), textiles, agricultural produce, electronic devices, footwear and ores. In 2014, Indonesian imports from
Germany fell by 5.5 per cent, to around EUR 3 billion. The country’s main imports from Germany are machin-
ery, chemical products, communications technology, electricity generation and distribution equipment, elec-
tronic components, motor vehicles and pharmaceutical products.
In 2015, Indonesia’s foreign trade (total imports and exports of goods) declined for the fourth
consecutive year. According to Statistics Indonesia figures, exports fell by 15 per cent, to USD 150 billion, and
imports slumped even more, by nearly 20 per cent to around USD 143 billion. In 2015, German exports to
Indonesia shrank by 15 per cent compared with the previous year, to USD 3.5 billion, Germany thus remaining
in ninth place among the country’s principal suppliers of goods. Germany’s main exports to Indonesia are
special machinery and motor vehicles (including components and parts).
In April 2016, Germany hold bilateral meeting with Indonesia in Germany. The President Joko Widodo
and German Chancellor Angela Merkel agreed to strengthen economic cooperation under the framework of
the Indonesian-European Union Comprehensive Economic Partnership Agreement (IE-CEPA). Merkel said Ger-
many fully supported the completion of IE-CEPA as soon as possible. In addition to boosting trade and invest-
ment, the completion of the Indonesian-European Union Comprehensive Economic Partnership Agreement
(IE-CEPA)'s scoping paper was another focus of the visit of President Joko Widodo to Germany.
In Friday 12 February 2019 German Ambassador Peter Schoof conducted an audience with the Gov-
ernor of DIY Sri Sultan Hamengku Buwono (HB) X in Gedhong Wilis Kepatihan Yogyakarta. Schoof would like
to thank you for meeting with Sultan HB X and intending to increase investment cooperation in the field of
energy, protection of environmental conservation, as well as waste management. In April 2021, the Indone-
sian President and the Germany Chancellor inaugurated the opening of Hannover Messe 2021 virtually as this
is the largest industrial technology exhibition.
Source taken directly from:
Ministry of Foreign Afairs Republic of Indonesia- http://www.kemlu.go.id
Ministry of Foreign Affairs of Federal Republic of Germany http://www.auswaertiges-
amt.de/EN/Aussenpolitik/Laender/Laenderinfos/01-Nodes/Indonesien_node.html
The Jakarta Post, http://www.thejakartapost.com/news/2016/04/19/indonesia-germany-team-up-
on-vocational-education.html
The Jakarta Post, http://www.thejakartapost.com/news/2016/04/19/jokowi-invites-germans-to-in-
vest-more-in-indonesia.html
Kompasiana, https://www.kompasiana.com/ivorytaarinda/5a9237c7bde5755cb176ff85/hubungan-
kerjasama-indonesia-jerman
Ministry of Industrial Affairs Indonesia, https://kemenperin.go.id/artikel/22465/The-President-of-
the-Republic-of-Indonesia-and-the-Chancellor-of-Germany-Inaugurate-the-Opening-of-the-Hanno-
ver-Messe-2021
4. Statistics and Data
Table 1: Germany’s Top Exports to and Imports from Indonesia (in USD)
Product Germany’s exports to Indonesia

Product Label
Code 2018 2019 2020
TOTAL All products 3,972,967,000 3,476,535,000 3,023,873,000
Machinery, mechanical appliances, nuclear reac-
84 1,301,419,000 1,246,291,000 1,083,525,000
tors, boilers; parts thereof
266,168,000 280,397,000 292,810,000
90 Optical photographic, cinematographic, …
Electrical machinery and equipment and parts 604,904,000 329,704,000 229,556,000
85
thereof; …
Vehicles other than railway or tramway rolling
87 215,922,000 232,276,000 145,908,000
stock, …
38 Miscellaneous chemical products 163,469,000 138,316,000 144,648,000
158,636,000 153,627,000 129,049,000
39 Plastics and articles thereof
29 Organic chemicals 127,684,000 130,532,000 127,125,000

73 Articles of iron or steel 83,452,000 65,773,000 113,853,000
30 Pharmaceutical products 117,233,000 105,818,000 101,685,000
32 Tanning or dyeing extracts; … 63,394,000 59,039,000 48,872,0000
Product Germany’s imports from Indonesia

Product Label
Code 2018 2019 2020
TOTAL All products 2,709,812,000 2,405,755,000 2,456,986,000
Footwear, gaiters and the like; parts of such arti-
64 361,678,000 306,650,000 347,230,000
cles
Machinery, mechanical appliances, nuclear reac-
84 426,284,000 356,484,000 338,977,000
tors, boilers; parts thereof
Articles of apparel and clothing accessories, not 254,077,000 273,481,000 210,229,000
62
knitted or crocheted
53,708,000 19,260,000 169,844,000
26 Ores, slag, and ash
Articles of apparel and clothing accessories, knitted
61 207,903,000 183,837,000 166,883,000
or crocheted
Electrical machinery and equipment and parts
85 184,434,000 131,954,000 141,814,000
thereof; …
40 Rubber and articles thereof 175,897,000 146,323,000 126,837,000
121,928,000 98,373,000 84,193,000
44 Wood and articles of wood; wood charcoal
Furniture; bedding, mattresses, mattress supports,
94 69,811,000 73,901,000 83,642,000
cushions and similar stuffed furnishings…
15 Animal or vegetable fats and oils and … 91,985,000 67,968,000 81,338,000
Data Source: ITC calculations based on COMTRADE statistics.
* Source: Indonesian Ministry of Trade
Table 2: Germany’s exports and imports percentage with Indonesia (in USD)
Germany’s exports to the world

Value in 2018 Value in 2019 Value in 2020
1,556,622,939,000 1,486,877,250,000 1,379,900,278,000
Germany’s exports to Indonesia
3,972,967,000 3,476,535,000 3,023,873,000
Germany’s exports to Indonesia compare to the World
0.26% 0.23% 0.22%
Germany’s imports from the world

1,286,008,402,000 1,236,217,435,000 1,172,923,865,000
Germany’s imports from Indonesia
2,709,812,000 2,405,755,000 2,456,986,000
Germany’s imports from Indonesia compare to the World
0.21% 0.19% 0.21%
Germany’s Total Trade with Indonesia

6,682,779,000 5,882,290,000 5,480,859,000
Germany’s Balance of Trade with Indonesia
1,263,155,000 1,070,780,000 566,887,000
Data Source: ITC calculations based on COMTRADE statistics.
5. Current Media News
Source Date Title Link
https://www.reuters.com/busi-
German finance minister
ness/energy/german-finance-
REUTERS 2022.03.13 open to new oil, gas drilling
minister-open-new-oil-gas-drill-
in North Sea
ing-north-sea-2022-03-13/
https://www.zawya.com/en/opi
Geopolitical changes propel nion/economic-insights/geopolit-
Zawya 2022.03.10
Germany-Gulf partnership ical-changes-propel-germany-
gulf-partnership-l9twce96
https://www.dw.com/en/rus-
Russian gas in Germany: A
sian-gas-in-germany-a-compli-
DW 2022.03.09 complicated 50-year rela-
cated-50-year-relationship/a-
tionship
61057166
https://www.reuters.com/busi-
Germany to spend $220 bil- ness/sustainable-business/ger-
REUTERS 2022.03.07 lion for industrial transfor- many-has-earmarked-220-billion-
mation by 2026 industrial-transformation-by-
2026-2022-03-06/
https://www.maritime-execu-
Germany Speeds Plan for
The Maritime tive.com/article/germany-
2022.03.07 First LNG Terminal to Re-
Executive speeds-plan-for-first-lng-termi-
place Russian Gas
nal-as-alternate-to-russian-gas
https://www.thelo-
The Local Ger- The 25 Most In-Demand Job cal.de/20220307/explained-the-
2022.03.07
many in Germany 25-most-in-demand-jobs-in-ger-
many/

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INDONESIA’S INTERNATIONAL PARTNERS

COUNTRY REPORT: FEDERAL REPUBLIC OF GERMANY

3. Political and Economic Relations

Product Germany’s exports to Indonesia

29 Organic chemicals 127,684,000 130,532,000 127,125,000

Product Germany’s imports from Indonesia

Germany’s exports to the world

Germany’s imports from the world

Germany’s Total Trade with Indonesia

Source Date Title Link

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