In the context of the 21st century being an Asian Century, German companies would do well to look further than China in exploring business opportunities, the German-Indonesian Business Forum at Hannover Messe 2021 concluded.
On April 12, 2021, the German-Indonesian Business Forum was held at Hannover Messe 2021, the world-wide largest industrial trade fair. Organized by the Asia-Pacific Committee of German Business (APA) and the Indonesian Chamber of Commerce and Industry (KADIN), the forum brought together a number of prominent speakers to discuss opportunities and challenges the German and Indonesian business community is facing today.
It is a very important Hannover Messe for Indonesia, as the nation was chosen to be the partner country in the first all-digital format of the trade fair due to the COVID-19 pandemic.
Moderated by Jan Roennfeld, Managing Director of the German-Indonesian Chamber of Industry and Commerce (EKONID) and Shinta Kamdani, Deputy Chairwoman for International Relations of KADIN, the forum shed light on how businesses in Indonesia and Germany are facing the COVID-19 pandemic, the lessons that businesses have learned, as well as the avenues for cooperation that have emerged since.
The forum hosted prominent business leaders as speakers: Mr. Joe Kaeser, Chairman of the Supervisory Board of Siemens Energy AG and Chairman of APA; Mr. Rosan Roeslani, Chairman of KADIN; Mr. Prijono Sugiarto, President Commissioner of Astra International; Mr. Rachmat Kaimuddin, CEO of the Indonesian e-commerce platform Bukalapak; and Markus Ochsner, Chairman of the Board at ABB Deutschland.
Mr. Kaeser expressed his appreciation for the business forum, jumpstarting the discussion with a statement that reverberated throughout the dialogue: 鈥淎sia is not just China. We company representatives in Germany sometimes tend to neglect that Asia is more, far more than China. We should broaden our view and better understand the diversity and the vast potential of the [Asia-Pacific] region,鈥� he said.
Mr. Kaeser further recognized that Indonesia, being the largest economy in Southeast Asia and the region鈥檚 only member in the G20, will play an important role in shaping that Asian Century. 鈥淭his year鈥檚 Hannover Messe is the perfect occasion to address the future. Indonesia with its young population and its great aspiration is the perfect nation for that. And Germany is an excellent partner to team up with,鈥� he said.
Mr. Roeslani echoed Mr. Kaeser鈥檚 statement, saying that Indonesia鈥檚 appointment as the partner country of Hannover Messe further embeds Indonesia鈥檚 position as a new power in the world economy and its rise as a new global manufacturing player.
Lessons from COVID-19
The forum also talked about the impact of the COVID-19 pandemic and how companies in Germany and Indonesia coped with the crisis.
Mr. Sugiarto highlighted the challenges and adjustment processes faced by Astra International, the largest Indonesian industrial conglomerate, during the time; from experiencing a 50% drop in profitability, to moving all operations online and digital and rebounding back to 70% of normal capacity. He also mentioned the various improvements in regards to healthcare and economic stimuli that the Indonesian government implemented in response to the pandemic.
鈥淥ne thing is for sure. At the end of the day, we will be making more use of these technologies,鈥� he said.
The e-commerce platform Bukalapak, on the other hand, is among those companies benefitting from the pandemic, with the massive shift of customers going from offline purchasing to online buying.
Mr. Kaimuddin said the pandemic has further legitimized Indonesia鈥檚 online economy and that its growth rate shows that Indonesia is more than ready to adopt digital technologies.
Finally, Mr. Ochsner noted the main lesson taught by the pandemic: " Having a strong and resilient digital infrastructure is crucial.鈥� He said the evidence shown by the growth of Indonesia鈥檚 digital economy shows that now is the right time to do business with Indonesia.
鈥淎nd this comes together with what I see as a continuous will and drive from the Indonesian government in announcing policy reform, incentives, deregulation which makes the country more attractive for both local and foreign investment,鈥� Mr. Ochsner said.
The one-hour long discussion was closed by Mr. Roennfeld, who reiterated the words of Mr. Kaeser that Asia potential鈥檚 does not stop at China and that there is massive potential to be found elsewhere on the continent, especially in Indonesia, further urging businesses to make use of the existing network of chambers of industry and commerce to tap into this potential.