Hannover Messe 2023: Strengthening between Countries and Regional Collaboration through the Indonesia-Germany Business Summit

Hannover Messe 2023: Strengthening between Countries and Regional Collaboration through the Indonesia-Germany Business Summit

Indonesia host the Indonesia-Germany Business Summit on April 17, 2023, Hannover time, at the International Convention Center, Hannover Fairgrounds, as part of the Hannover Messe 2023 industrial exposition series.


The Indonesian Chamber of Commerce and Industry (KADIN), the German government, and the Asien- Pazifik-Ausschuss der Deutschen Wirtschaft (APA) worked together to hold the Business Summit, which was inaugurated by the President of the Republic of Indonesia Joko Widodo and German Chancellor Olaf Scholz. Approximately 500 international participants from the industry, policymakers from other countries, affiliated associations, and regular visitors attend this meeting.


In his remarks, Indonesian President Joko Widodo said that Indonesia's economy gradually emerging as a bright spot amid global uncertainty. In 2022, Indonesia's economy expanded by 5.31%, this is the highest rate since 2014. "Today, I invite Germany to be a significant part in our shared progress. The long-standing business relationship between Germany and Indonesia can serve as an example of a North-South cooperation that is equal, mutually respectful as well as beneficial and it can also be the ideal form of a partnership in the future," said the President.


For Indonesia, there are at least three things that are important as priorities. First, start with the downstream industry to boost added value, maintain sustainability, and generate employment. Indonesia is ready to collaborate with other countries in the growth of the semiconductor industry and the manufacture of batteries for electric vehicles, the President claims."I anticipate the support of German businessmen to bring Indonesia into the global supply chain of chips," he explained.


Second, is the energy transition. Indonesia is committing to make the world a better place by the transition. Furthermore, the potential for new and renewable energy (EBT) in Indonesia is also very large, at 434 thousand Mega Watts. In this situation, Indonesia needs creative financial support, high-tech transfer, and labor reskilling. Third, the development of the Archipelago's National Capital City (IKN) ."This is a new hub that connects existing facilities in adjacent cities," the President explained.


German Chancellor Olaf Scholz said that Germany is Indonesia's largest business partner in Europe with more than 250 German companies having branches in Indonesia. He observed that Indonesia's growth is impressive and an ideal place to expand. "Partnership opportunities are available for the energy transition. Most importantly, a new business that creates cutting-edge technology to ensure that climate neutrality and prosperity are able to coexist, can be established. Therefore, I invite all of us to take advantage of this opportunity that is now available," he said.


Dr. Roland Busch, APA Chairman and president and chief executive officer of Siemens AG, said that Germany and Indonesia can forge a long-lasting partnership. This is one of the reasons why Indonesia becomes the official country partner at the Hannover Messe 2023. Additionally, the cooperation between Germany and Indonesia is mutually beneficial with the support of high technology from Germany, and access to a large and growing market from Indonesia. “Indonesia is a great place to expand,” said Busch.


Chairman of the Indonesian Chamber of Commerce and Industry M. Arsjad Rasjid P.M. explained that green technology aids economic recovery through digitization and renewable energy. Thus, we can develop industries that are more sustainable, efficient, and resilient by utilizing the power of digital transformation. Both parties expect that this event will enable businesspeople from Germany and Indonesia to work together on projects involving sustainable industrial technologies.


The forum also featured guest speakers Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE, and Prijono Sugiarto, President Commissioner of Astra International for a discussion titled "Flashlight on Indonesia-German Business Cooperation." Jan Rönnfeld, Executive Director of EKONID Germany, served as the discussion's moderator.


In comparison to previous decades, according to Prijono Sugiarto, Indonesia has grown to be a country with a more resilient business climate. Dr. Martin Brudermüller, meantime, suggested that Indonesia concentrate on addressing the needs of its citizens rather than trying to imitate what European countries are doing. In this situation, according to Brudermüller, Indonesia can be a successful country in its own way.


According to him, there are several things that are important to highlight. Notably, Indonesia's resilience is more stable and it provides a variety of investment facilities, for that reason it is anticipated that German businessmen will invest in Indonesia.