PartnershipsSoutheast Asia

Germany, Indonesia move toward strategic partnership

Gusty Da Costa

Germany and Indonesia are poised to upgrade their long-standing cooperative relationship to a strategic partnership focusing on defense and security. The initiative, spearheaded by German Chancellor Olaf Scholz and Indonesian Defense Minister and President-elect Prabowo Subianto, underscores a mutual commitment to deepen ties amid evolving geopolitical dynamics in the Indo-Pacific.

“Germany is an important comprehensive partner for Indonesia in various sectors, including defense,” Prabowo said in late March 2024 after receiving a letter from Scholz conveying Berlin’s desire to fortify the bilateral relationship.

Dave Laksono, a lawmaker overseeing defense issues in Indonesia’s House of Representatives, said discussions with Germany could encompass “co-production, capital participation in a consortium and technology transfer” aimed at bolstering Jakarta’s defense capabilities through shared initiatives and expertise.

“This strategic defense and security partnership is a bridge of defense diplomacy connecting the two countries,” he told FORUM. “It paves the way for cooperation in areas such as technology transfer, joint training and defense industry development, and emphasizes the alignment in democratic values, human rights and multilateralism.”

The collaboration was evidenced in Germany joining the Indonesia-hosted multilateral exercise Super Garuda Shield 2023 as an observer. The German Air Force also is participating in drills and relationship-building missions with Indonesia and other Indo-Pacific partners during 2024.

Germany’s strategic interest in the region, particularly in ensuring stability, complements Indonesia’s need for advanced defense technology and capacity building, Laksono said.

“Indonesia and Germany have demonstrated their commitment to a strategic defense and security partnership through various initiatives and collaborations,” he said.

The proposed strategic partnership is expected to yield substantial economic, political and security benefits for both countries. Increased trade and investment, technology transfers, and job creation are among the anticipated outcomes, Teuku Rezasyah, an international relations lecturer at Indonesia’s Padjadjaran University, told FORUM. Security benefits likely include enhanced capabilities to combat terrorism, transnational crime and natural disasters.

Trade between the nations totaled about $8.5 billion in 2023, according to Germany’s Federal Foreign Office.

Establishing a strategic partnership could be a milestone in shaping future bilateral relations and regional dynamics, while rejuvenating the nations’ historical bonds, particularly in defense industry cooperation and technology exchange, Rezasyah said.

“Germany is a leading country in Western Europe and Indonesia is a leading country in Southeast Asia. Bilateral relations … are very good,” he said. “This partnership, therefore, is not merely a continuation of past interactions but a strategic elevation aimed at mutual benefit and regional stability.”

Gusty Da Costa is a FORUM contributor reporting from Jakarta, Indonesia.

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