good crabVietnamese crab exporter

Prabowo Courts EU Leaders in Brussels to Finalize Zero-Tariff Trade Deal

Martin Bagya Kertiyasa, Heru Andriyanto
July 13, 2025 | 12:55 pm
SHARE
President Prabowo Subianto salutes on the stairs of the presidential plane before travelling overseas at Halim Perdanakusuma Air Force Base in Jakarta, July 8, 2025. (Photo courtesy of the Cabinet Secretariat)
President Prabowo Subianto salutes on the stairs of the presidential plane before travelling overseas at Halim Perdanakusuma Air Force Base in Jakarta, July 8, 2025. (Photo courtesy of the Cabinet Secretariat)

Jakarta. President Prabowo Subianto arrived in Brussels on Saturday for high-level talks with European Union leaders, including European Commission President Ursula von der Leyen, as Indonesia pushes to finalize a landmark trade deal aimed at eliminating tariffs on its exports to the bloc.

The visit follows stalled negotiations with the United States, where Indonesia faces a 32 percent “reciprocal tariff” imposed by former President Donald Trump.

Prabowo was accompanied by Chief Economic Minister Airlangga Hartarto -- who led the earlier US negotiations -- along with Investment Minister Rosan Roeslani, Cabinet Secretary Teddy Indra Wijaya, and Trade Minister Budi Santoso.

Airlangga said the Brussels trip is focused on concluding the long-delayed Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA), which has been under negotiation for nine years and is now at the ratification stage.

ADVERTISEMENT

“This agreement marks a new milestone amid uncertainties in Indonesia-EU economic ties,” Airlangga said in a video statement broadcast Sunday by the State Secretariat’s YouTube channel.

Once ratified, CEPA will eliminate tariffs on a substantial share of bilateral trade. “Indonesian goods will enter the European market with zero percent tariffs,” Airlangga said, noting that the official signing is scheduled for the third quarter of 2025 in Jakarta.

He added that the deal comes as global economic and geopolitical dynamics shift: “Indonesia is set to become the EU’s strategic partner as we progress toward OECD membership. Indonesia’s economy will continue its strong growth, and they see Indonesia as ASEAN’s economic anchor -- the gateway to the region.”

Saturday’s visit marks Airlangga’s second trip to Brussels in two months, following a final round of CEPA negotiations last month, where both sides resolved remaining technical issues.

Airlangga’s announcement came after a meeting with European Commissioner for Trade and Economic Security Maroš Šefčovič in Brussels.

The EU is Indonesia’s fifth-largest trading partner, with bilateral trade reaching $30.1 billion in 2024. Indonesia posted a $4.5 billion trade surplus with the EU last year.

“Indonesia and the EU recognize this as a critical moment,” Airlangga said during his earlier visit. “Our key commodities complement rather than compete. Finalizing this agreement will jointly strengthen global supply chains.”

Zero Tariffs
Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation. Sectors set to benefit include labor-intensive industries such as footwear, textiles, and garments, as well as palm oil, fisheries, renewable energy, and electric vehicles.

During negotiations, the EU raised concerns over local content requirements (TKDN), automotive sector access, critical minerals, and investment incentives.

Indonesia, in turn, pressed for equitable treatment of its fishery exports, seeking parity with ASEAN neighbors such as Thailand and the Philippines. Airlangga said the EU had agreed to ensure a level playing field for Indonesian fishery products.

On the EU’s deforestation regulations, Commissioner Šefčovič assured Indonesian officials that special consideration would be given -- a pledge Airlangga said would safeguard Indonesia’s forest-based exports.

The Indonesian government estimates that CEPA could boost its exports to the EU by over 50 percent within three to four years by improving market access and removing key trade barriers.

Tags: Keywords:
Google Add Investor.id as a preferred source on Google +
SHARE

Related Articles


Special Updates Aug 22, 2026 | 6:55 pm

Indonesia–EU Trade Deal Enters Final Stage as Government Prepares for Signing and Implementation

Indonesia-EU trade deal nears signing, with implementation targeted for early 2027 to boost market access and investment.
Business Aug 20, 2026 | 5:19 pm

Indonesians Keep $252 Billion in Gold ‘Under the Pillow’: Airlangga

Indonesian households hold an estimated 1,800 tons of gold worth $252 billion, offering huge potential for the country’s bullion market.
Business Aug 20, 2026 | 5:09 pm

Indonesia, Germany Eye Deeper Ties in Green Energy, Semiconductors

Indonesia and Germany are deepening cooperation in renewable energy, semiconductor supply chains and vocational education.
Special Updates Aug 20, 2026 | 4:27 pm

Indonesia Sets Out 2027 Economic Transformation Plan to Drive 8% Growth

Indonesia is accelerating downstreaming, investment and SOE reforms as it seeks new growth engines and targets 8% economic growth.
Business Aug 10, 2026 | 9:37 pm

Destry Nomination Ensures Smooth Transition at Bank Indonesia: Airlangga

Airlangga backs Destry Damayanti as BI governor, saying her experience at the central bank would ensure a smooth leadership transition.
Business Aug 10, 2026 | 11:47 am

Indonesia Reconsiders Hybrid Car Incentives as Sales Surge 45%

Hybrid sales jumped 45% in H1 2026, but the government says strong demand weakens the case for more incentives.
Business Aug 7, 2026 | 2:03 pm

Indonesia Expands Tax, Wage Incentives to Curb Layoffs

Indonesia is using tax incentives and government-funded internship wages to help companies retain workers amid layoffs.
Special Updates Jul 31, 2026 | 4:31 pm

How Indonesian Traditions Can Drive Local Economy

The Indonesian government sees opportunities in driving the local economy by preserving local traditions.
Business Jul 27, 2026 | 6:16 pm

Government Says Perry Warjiyo's Resignation Won't Disrupt Monetary Policy

The government says Bank Indonesia's policies and coordination will continue unchanged despite Perry Warjiyo's resignation.
Business Jul 23, 2026 | 10:01 pm

Gov't  to Launch International Financial Center in Jakarta Before Expanding to Bali

Indonesia will launch its international financial center in Jakarta before expanding the project to Bali within two to three years.

The Latest


News 6 hours ago

Court Hears of $5,000 Fee for Expedited Hajj Slots in 2023

A former Religious Affairs Ministry staffer testified that 181 pilgrims paid $5,000 each for expedited hajj departures in 2023.
News 7 hours ago

Five Journalists Reported Missing While Covering Anak Krakatau Eruption

Five journalists and two boat crew members are missing after losing contact while covering the Anak Krakatau eruption off Banten.
Business 8 hours ago

Trump Tariffs Cripple EU Firms’ Confidence in ASEAN

As many as 81% of the surveyed European businesses admit that the US tariffs had weakened their confidence in ASEAN.
Business 10 hours ago

Rupiah Strengthens to Rp17,632 on Reserve Boost

The rupiah rose 0.05% to Rp17,632 as higher foreign exchange reserves offset geopolitical risks and US inflation concerns.
Business 11 hours ago

Stocks Climb 1% as Indonesia’s Reserves, Airport Operations Recover

Indonesian stocks rose 1% as stronger foreign reserves and airport reopenings lifted domestic market sentiment.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED