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Prabowo Says US, EU Remain ‘Very Important’ as Trump Ignites Trade War

Jayanty Nada Shofa
July 14, 2025 | 9:23 am
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President Prabowo Subianto shakes hands with European Commission President Ursula von der Leyen at the European Union headquarters in Brussels, Belgium on July 13, 2025. (Photo Courtesy of Presidential Press Bureau)
President Prabowo Subianto shakes hands with European Commission President Ursula von der Leyen at the European Union headquarters in Brussels, Belgium on July 13, 2025. (Photo Courtesy of Presidential Press Bureau)

Jakarta. Indonesia considers both the United States and the European Union to be “very important”, according to President Prabowo Subianto, as Jakarta moves closer to sealing a trade agreement with the 27-member bloc amid US President Donald Trump’s tariff campaign.

Prabowo was in the EU headquarters over the weekend to meet the group’s chief Ursula von der Leyen. The trip came against the backdrop of an outstanding Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA), which was set to bring down most of the tariffs on traded goods to zero percent.

Both leaders finally reached a political agreement to conclude the CEPA this September after a decade of negotiations. The agreement could enable the two sides to diversify trade following Trump’s renewed tariff blitz.

A reporter had asked Prabowo during a joint news briefing whether the EU could replace the US as a global leader and fill in the gaps that Washington had left. Prabowo said that the US would remain a major global power, while highlighting how the European bloc had been pivotal to technological advancements.

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“No, I think the US will always be a very important leader in the world, but I consider Europe to be a very important factor in world civilization. Europe is the leading edge of many sciences, technologies, et cetera. Europe is always leading the world in upholding democratic values, human rights,” Prabowo responded.

“We would like to see a very strong Europe. This is a part of the world architecture of, let us say, multipolar, and the powers that will contribute to peace and stability,” he told the presser.

Prabowo then went on to say how climate change, as well as the environmental impacts of industrialization, had become a "fact of life". The retired army general added: “We need strong powers that contribute to peace and stability. We consider Europe to be very important.”

Prabowo Says US, EU Remain ‘Very Important’ as Trump Ignites Trade War
US President Donald Trump announces his reciprocal tariff plans in the Rose Garden at the White House on April 2, 2025. (AP Photo/Mark Schiefelbein, File)

Both Prabowo and von der Leyen are among the world leaders that had received Trump’s tariff threat letters.

In that letter, Trump wrote that he would keep the new tariff rates on Indonesian goods unchanged at 32 percent, while giving Jakarta some time to negotiate until August 1.

State Secretary Prasetyo Hadi revealed Friday that Prabowo was hoping to have an in-person dialogue with Trump. However, Prasetyo could not confirm the date of when this meeting would actually take place. In the meantime, Chief Economic Minister Airlangga Hartarto had traveled to Washington, DC for another round of talks before the deadline.

The US plans on slapping a 30 percent tariff on EU goods entering its market, steeper by 10 percentage points than what Trump had unveiled back in April. Speaking at the same news briefing as Prabowo, von der Leyen signaled the EU would take a two-track approach in response to the US threats, starting with negotiations and followed by countermeasures if necessary. As the tariff campaign rages on, the EU has also chosen to diversify its trade relationships, including with Indonesia.

“So this big and important political agreement on a free trade agreement with Indonesia today is a huge milestone forward. It shows that we are looking for a new and open market,” von der Leyen said.

Under the upcoming CEPA, 80 percent of Indonesia’s EU-bound exports will enjoy zero tariffs. The document is also expected to strengthen the supply chains of critical raw materials. The EU reported that its trade in goods with Indonesia had totaled 27.3 billion euros (approximately $31.9 billion) last year. About 17.5 billion euros were EU imports, data showed.

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