Germany, Indonesia share views on importance of international cooperation at APK Digital 2020

22/10/2020

Indonesia shares Germany鈥檚 vision that closer economic cooperation is integral in ensuring that the world survives the COVID-19 pandemic whilst maintaining a sustainable economic growth trajectory. The current challenges of the pandemic, potential decoupling and climate change should rather serve as a momentum to deepen economic ties between Germany and Indonesia, as well as the EU and ASEAN.

The Asia-Pacific Conference of German Business (APK) Digital 2020 held on October 19 succeeded in strengthening German-Indonesian ties via their mutually shared principles in the fight against the economic impact of the COVID-19 pandemic.  

Amidst the current challenge of a potential decoupling between the two largest economies in the world as well as the challenge of climate change, the APK showed that there are still many economies in Asia and Europe that are open and willing to work together for mutual benefit and also in order to assume global responsibility.  

As mentioned in her opening of APK 2020, which was held in the digital space for the first time ever due to the pandemic, German Chancellor Dr. Angela Merkel said the new policy guidelines for the Indo-Pacific region issued by Germany has already flagged a range of opportunities for closer cooperation, especially in terms of economic relations. Mr. Joe Kaeser, Chairman of the Asia-Pacific Committee reiterated the importance of the Asia-Pacific region in this regard as the region is a key element to Germany and the EU鈥檚 foreign and economic relations. In the words of the German Minister of Economic Affairs and Energy Mr. Peter Altmaier: 鈥淲e are, after all, allies united in a shared commitment to rules-based free trade, open markets and the modernization of the WTO.鈥 

Indonesia reciprocates Germany鈥檚 views on those issues. Speaking under the theme 鈥淎sia-Pacific as a Motor for the World Economy鈥, Indonesia鈥檚 Coordinating Minister of Economic Affairs Airlangga Hartarto welcomed the new policy guidelines for the Indo-Pacific region, noting that Germany is one of the largest contributors of cooperation programs and projects in ASEAN.  

Mr. Hartarto added that Germany could still do more to support countries in the region, especially Indonesia, in times of great uncertainty and challenges such as the current COVID-19 pandemic. The situation triggered by the pandemic has by and large created a momentum for Indonesia to transform its economy, to upgrade the skills of its workers and to accelerate digital transformation while continuing to advance towards industry 4.0., a strategic concept which was introduced and developed by Germany. 

In this regard, as part of the Indonesian economic transformation process, the archipelagic nation recently passed the Omnibus bill on Job Creation which is expected to improve the Ease of Doing Business in Indonesia and attract investments by boosting job opportunities and economic growth. Once enacted, the law should simplify the situation of hyper regulation which has often hindered business activities in Indonesia. 

鈥淏y investing in Indonesia, you are not only benefitting from our strategic location at the heart of the growing market of East and Southeast Asia, most importantly, it will also place Germany in the forefront of a regional drive towards economic recovery and economic transformation,鈥 said Mr. Hartarto during the conference. 

This position was further echoed by Indonesia鈥檚 Minister of Maritime Affairs and Investment Mr. Luhut Binsar Pandjaitan. Speaking under the theme 鈥淚nfluence of Power Dynamic on ASEAN鈥, Minister Pandjaitan expressed his optimism that ASEAN resilience will bring the world economy back to its pre-covid-19 trajectory.  

ASEAN has the third largest population in the world globally at 650 million people and a combined GDP of 2.8 trillion US dollars. Mr. Pandjaitan said the cooperation and solidarity between countries in ASEAN have been proven by the test of time and that the conclusion of the negotiations for the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA), with regards to the various trade agreements already achieved by the EU with other ASEAN nations, would further strengthen trade and investment between Germany and Indonesia. 

Mr. Pandjaitan also took the opportunity to assure APK participants of Indonesia鈥檚 efforts to become a significant investment destination for German companies in the region, stating that the country is close to implementing its COVID-19 vaccination campaign, as well as repeating its goals of becoming a global manufacturing hub for lithium battery with regards to its significant reserves of nickel, cobalt and rare earths that are prominent in the production of lithium battery. 

鈥淚 urge Indonesia and Germany to work closely with relevant stakeholders to identify concrete cooperation based on those guideline benefit,鈥 Mr. Pandjaitan said. 

In the conclusion of APK Digital 2020, Mr. Kaeser said innovation and education are to be applied to Asian economies and that developing economies must participate and industrial nations have a responsibility to make it happen. He also noted the critical role value chains play in the global economy and that collaboration, with regards to diversification and local footprint within a rule-based trade system, matters in shaping the world post COVID-19. 

鈥淭he Pandemic COVID-19 may have separated us physically at the APK this year. But it has brought us together closer when it comes to efficiency, when it comes to values, and when it comes to collaboration. It has pushed digitalization. It took us out of our comfort zones as leaders, for both countries and companies. As leaders we need to show the people the way to the future. And it鈥檚 important to show them that there is life after COVID-19,鈥 he said. 

The next APK will be held in Tokyo in 2022.