The economics of cooperation
The ministry's full name is the Federal Ministry for Economic Cooperation and Development. Under the 2026 reform plan the economic part carries more weight: loans for emerging economies, investment partnerships and closer work with German companies.
How development policy works with business
- 01German companies abroadBusiness delegations, chambers abroad and advisory services link German firms with partner-country markets. Indonesia is one of nine new focus countries for this work.
- 02Development financeKfW Development Bank provides grants and concessional loans; its subsidiary DEG finances private companies in developing and emerging economies.
- 03Private-sector mobilisationGuarantees, blended finance and funds that use public money to attract private capital, such as the European Flagship Fund for Ukraine presented in 2026.
- 04Sustainable supply chainsStandards for labour and environmental conditions in global supply chains, and support for producers to meet them.
- 05Renewable energy & infrastructureEnergy partnerships, grids and green hydrogen. A green hydrogen academy was launched in Indonesia with Enapter and DEG in August 2026.
- 06Skills & entrepreneurshipVocational training and skills alliances, such as the Skills Alliance for Ukraine, which the BMZ says has trained 725,000 people since 2024.
- 07Local value creationProcessing and production in partner countries rather than raw-material extraction alone. This is a stated aim, and critics test it against practice.
Indonesia: energy transition with a business delegation
The Federal Government and the BMZ described the trip as focused on renewable energy and a socially just energy transition, with a delegation of German companies.
- 17 Aug
Departure statement
The BMZ press release framed the trip around energy, jobs and market access for German companies.
- 19 Aug
Indonesia Sustainable Energy Week
She opened the 2026 edition and restated the JETP goal of mobilising about US$20 billion. She also visited the Istiqlal Mosque and Jakarta Cathedral.
- During the visit
Site visits
Bayer in Depok (micronutrient supplements against stunting), Siemens, IPB University in Bogor (launch of a solar cooling facility), and the Cirata floating solar plant (a weather forecasting system). Kick-off of a green hydrogen academy with Enapter and DEG.
- 20 Aug
Government meetings
Coordinating Minister for Economic Affairs Airlangga Hartarto, the planning minister and the vice minister of energy.
Mit unserer Entwicklungszusammenarbeit unterstützen wir Indonesien bei seiner Energiewende. Wir investieren in erneuerbare Energien und moderne Stromnetze.“With our development cooperation we support Indonesia in its energy transition. We invest in renewable energy and modern power grids.” (translation)What was and was not announced
Existing framework
JETP (since 2022), target about US$20 billion. Germany co-leads the partners' group with Japan. The German embassy reports US$1.1 billion in loans and equity approved and US$230 million in grants under JETP.
New on this trip
Project launches and site visits. No new euro amount was published in the sources reviewed for this site.
Critics of private-sector-led development, including the opposition Greens and Left in their response to the 2026 reform, argue that partnerships should be judged by benefits for people in partner countries, not by market access for German firms. The ministry's line is that both can gain.
Results to watch
These are indicators this site will use to judge economic cooperation. They are not achievements yet.
- BMZ, Indonesia trip, 17 Aug 2026: bmz.de
- German Embassy Jakarta, visit report: jakarta.diplo.de; JETP: jakarta.diplo.de
- AHK Indonesia (EKONID): indonesien.ahk.de
- BMZ, Ukraine Recovery Conference 2026: bmz.de; Federal Government: bundesregierung.de