"The VDA expressly welcomes the fact that the EU and Indonesia have agreed on a free trade agreement after nine years of intensive negotiations.

With approximately 283mn inhabitants and dynamic economic development, Indonesia is an important growth and diversification market for the German automotive industry. The agreement concluded today creates the necessary political framework for the German automotive industry to open up new markets and further expand its presence in the region. This is particularly good news for the German supplier industry, which already has a presence in Indonesia.

Furthermore, Indonesia plays a key role in the supply of raw materials: Indonesia is a global leader in the mining and processing of nickel and tin—both important raw materials for automotive production. The agreement offers the opportunity to secure stable and reliable supply chains in this area as well.

Now we have to wait for the details of the agreement.

The fact is: EU trade agreements are of great importance for the entire European economy, especially for Germany as an export-oriented country. In the German automotive industry, approximately 70% of jobs are linked to exports. The conclusion and rapid ratification of further EU free trade agreements therefore remains of central importance for the German automotive industry. Political determination must now be pursued in this regard. Of particular importance here are India, the MERCOSUR states, and other ASEAN member states such as the Philippines, Thailand, and Malaysia.

The following applies: Only a strong and export-capable industry will be able to master the major challenges of the transformation and thus make a decisive contribution to climate protection. And: Only with economic strength, the EU can play an important role on the global stage. Trade agreements provide an important basis for this."

Figures:
In 2024, the German automotive industry exported goods worth €223.2mn to Indonesia, of which €91.6mn was parts. Conversely, Indonesia exported goods worth €37.1mn, of which €36.7mn was parts and accessories.