Indonesia has long established itself as a key partner for Europe, with their cooperation spanning centuries across various sectors. Particularly in the economic field, trade between Indonesia and Europe has grown significantly. In 2019, bilateral trade reached approximately USD 34 billion, increasing to USD 43.2 billion in 2023. From 2014 to 2023, cumulative trade exceeded USD 375 billion. European investments in Indonesia amounted to USD 3 billion in 2023, a 4.4% increase from the previous year. Indonesian Deputy Minister of Foreign Affairs, Pahala Mansury, emphasized that Indonesia remains a crucial market for European companies. During the Indonesia-Europe Business Forum (IEBF) 2024 at the Shangri-La Hotel, Jakarta, on Monday (7 October 2024), he stressed the need to unlock the untapped potential of this partnership.
Pahala urged closer collaboration with Europe in several areas. The digital economy, he noted, is the fastest-growing sector in Indonesia and ASEAN, with Indonesia leading ASEAN’s digital economy, projected to grow from USD 1 trillion in 2020 to USD 2 trillion by 2030. Other areas include green and blue economies, where there is potential for developing renewable energy and battery ecosystems. He also highlighted tourism, which contributes 4.1% to Indonesia’s GDP and supports 22 million jobs, along with the creative industries. Additionally, Pahala underscored health sector collaboration, particularly in strengthening healthcare post-COVID-19, and the manufacturing sector, where Indonesia is developing food, textiles, chemicals, automotive, and electronics industries to better integrate with global supply chains.
