Prior to the exhibition, the government announced that Indonesian entities had signed memorandums of understanding (MoUs) worth Rp 30 trillion (US$2.04 billion) and had secured commitments from several major German chemical and automotive firms to invest in Indonesia's electric vehicle (EV) battery industry.

Investment Minister Bahlil Lahadalia said he had accompanied the President for meetings with Germany’s BASF and Volkswagen and France’s Eramet.

On the occasion, BASF reportedly reiterated its interest in the EV battery ecosystem in North Maluku, with $2.6 billion in proposed investments. The chemical company had pitched a plan to Bahlil in October 2021 to build a plant with an annual production capacity of 42,000 tons of nickel and 5,000 tons of cobalt.

"This is an investment partnership with Eramet to build an environmentally friendly ecosystem using green energy. Construction would begin at the end of this year," Bahlil said in a statement.

Volkswagen, according to Bahlil, expressed its intention to help build Indonesia’s EV battery ecosystem through its battery subsidiary PowerCo and to collaborate with Vale, Ford and Huayou, which announced a $4.5 billion deal to build a nickel processing plant in Southeast Sulawesi last month.

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Furthermore, the German carmaker wants to partner with Indonesia’s Kalla Group and Merdeka Copper Gold.

"Some of those partnerships are [for] joint ventures, but the rest are [only] for the supply of raw materials," Minister Bahlil acknowledged.

Rp 30 trillion and up

Coordinating Economic Minister Airlangga Hartarto announced the Rp 30 trillion worth of MoUs on Sunday.

"Of course, we hope more investment will come during the Hannover Messe," Airlangga said, as quoted by Tempo.

Eko SA Cahyanto, resilience, zoning and international industrial access director general at the Industry Ministry, said 19 new agreements had been signed, some government-to-business (G2B) and some business-to-business (B2B) partnerships covering semiconductors, medical equipment, digital industries and waste management, among other areas.

Some of the agreements were for direct investment, he noted, while others were for industrial land purchases and the technology use.

Foreign Minister Retno LP Marsudi, meanwhile, said two declarations of intent had been signed between Jakarta and Berlin, one on the Joint Economic and Investment Committee (JEIC) to encourage the establishment of a discussion forum between the public and private sectors and the other on digitalization, involving Indonesia's Communications and Information Ministry and Germany's Ministry for Digital and Transport.

President Jokowi pressed for a fair economic relationship with Germany and the European Union.

"The President also asked for Germany's support so that the negotiations for the Indonesia-EU Comprehensive Economic Partnership Agreement [CEPA] can be concluded quickly," Minister Retno said in a statement.

Indonesian Ambassador to Germany Arif Havas Oegroseno said President Jokowi had encouraged Europe to invest in Indonesia’s solar panel industry, noting abundant reserves of silica sand and bauxite in the archipelago.

Read also: China may be hindrance in RI getting FTA with US on critical minerals

In response, Scholz said he would press for the finalization of the trade agreement between the EU and Indonesia as it could support his country’s efforts to reduce its dependence on China for critical raw materials like copper and nickel.

“I am working to finally get this agreement across the finish line,” Scholz said about the negotiations, which have been ongoing since 2016, as quoted by news agency the Associated Press.

Free and active economy

In his speech to open the Hannover Messe, President Jokowi explained that Indonesia was not "closing its borders" and was open to investment and partnerships to build downstream industries in the country. He also restated his commitment to sustainability.

"The pace of deforestation has dropped significantly and [hit the lowest level] in 20 years. Forest fires are down 88 percent, and the rehabilitation of 600,000 hectares of mangroves will be finished in 2024," he said, according to the State Secretariat website.

Indonesia used the occasion to highlight that it was not seeking investment only from the Asian continent, but also from Europe.

"[Ours] is an inclusive way of [doing business] that also annuls some people’s thinking that the management of mining activities in Indonesia is not in line with international standards,” Bahlil said.

He noted there was a tendency in Europe and the United States to be wary of “a certain country” participating in Indonesian industry – likely a reference to China, which has been at odds with Western powers on a number of issues.

"This is Indonesia's role; [we] want a free and active economic system. We can be friends with all countries, but no country can [push their] rules on us. The President's guidance is to keep all investors entering the country in a proper way," Bahlil stated.