Indonesia and Czech Republic to Enhance Economic Cooperation

November 2023

Indonesia and the Czech Republic have agreed to enhance cooperation in various fields, including infrastructure, transportation, vocational education, energy and mineral resources, environmental protection, defense industry, and healthcare, during the 6th Session of the Joint Economic Committee (JEC) held in Jakarta. During the discussion, the Director General of American and European Affairs asked the Czech government and enterprises to engage in the construction of Ibu Kota Nusantara (IKN), Indonesia’s new capital.

Meanwhile, the Czech Republic’s Acting Director General in Charge of the Economy Section of the Ministry of Industry and Trade expressed gratitude to the JEC for its critical role in promoting economic cooperation between the two nations. The Director General will also inform Czech companies about investment potential in IKN.

Two Czech corporations, hospital furniture specialist LINET and automaker Škoda Group, attended the meeting. LINET has chosen to expand its operations in Indonesia and open a patient bed manufacturing facility, focusing on fulfilling the demands of the Asia-Pacific area. Meanwhile, the Škoda Group looks at investment and collaboration prospects in Indonesia, including joint manufacturing and internship programs for vocational students.

In addition to the JEC, the Czech delegation visited the PLN Nusantara Power Muara Karang Steam Gas Power Plant (PLTGU) and participated in the Indonesia-Europe Business Forum (IEBF), which was organized by the Directorate General of American and European Affairs of the Ministry of Foreign Affairs of the Republic of Indonesia. LINET and PT D&V International Makmur Gemilang made an investment commitment during the IEBF to construct a production facility in Indonesia.

The Czech Republic is one of Indonesia’s rising Central European partners. Czech investments in Indonesia reached USD 3.2 million in 2022, representing a 211.9% rise over the previous year. Overall trade between Indonesia and the Czech Republic continues to increase and reached USD 254.9 million in 2022.

(Source: Ministry of Foreign Affairs of the Republic of Indonesia)

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