Jakarta. Estonian Foreign Affairs Minister Margus Tsahkna recently said that Indonesia could count on the European Union or the EU amid the heightened tariff wars triggered by US’ tariff aggression.

Estonia has sent its top diplomat to Indonesia to build stronger ties with Southeast Asia’s largest economy. His visit came at a time just weeks after US President Donald Trump announced tariffs that had darkened the global economic outlook. Washington’s 10 percent baseline tariff is already in force. Higher tariffs from Trump are now currently on hold until early July, with Indonesia getting slapped with a 32 percent levy. Goods from the EU --  of which Estonia is a part of -- will get charged a 20 percent tariff when they enter the US. Importers will likely pass on the costs to the consumers, making the foreign-made goods more expensive and less competitive. Amid the tariff storm, Indonesia intends to diversify its markets, including to the EU. 

During an interview with B-Universe Media Holdings, Tsahkna commented on this plan, saying that the European bloc was ready to engage in greater trade ties. 

“There are lots of opportunities. … The EU is one of the most trustful partners for Indonesia and the region. We are reliable and follow the law. … We have many projects in the region for investments, but also the other way around as a market,” Tsahkna said.

He added: “The EU is the world’s largest single market, and to be honest, the wealthiest as well.”

The Estonian envoy also said that the ongoing tariff war could have a major influence on people’s everyday life, thus highlighting the need to discuss its impact with trading partners. Official figures showed Indonesia-Estonia’s trade jumped from $446.1 million in 2023 to $540 million the following year. Indonesia’s export volume to Estonia was almost 32-times bigger than what it imported in 2024, giving Jakarta a $508 million surplus that year. 

At present, a trade treaty between Indonesia and the EU is in the works, although years have passed since the negotiations began in July 2016. The pact’s deadline keeps getting pushed back, and Jakarta now intends to complete the much-awaited comprehensive economic partnership agreement (CEPA) negotiations with the EU within the first half of 2025. Indonesia reported that its surplus with the EU totaled almost $4.5 billion in 2024, almost double the $2.5 billion surplus recorded in 2023. Like most CEPAs, the treaty is expected to greatly slash import tariffs on goods coming to Europe, although the government will disclose the details once the document gets signed. Bernd Lange, who heads the European Parliament’s trade committee, revealed that both sides had resolved "around 80 percent" of the issues related to the trade deal.

Add as a preferred source on Google +