Prabowo Says US, EU Remain ‘Very Important’ as Trump Ignites Trade War
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.
“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.”
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.
Tags: Keywords:Related Articles
EU Tariff Deal to Make German Cars in Indonesia More Affordable
Senior minister Airlangga Hartarto says the upcoming trade deal will cut tariffs on European car imports to "close to 0%".Indonesia’s Sustainable Cocoa is Not Only for EU
The EU will soon only accept imported cocoa that is proven to not come from deforested land.Trump Too Stubborn to Rejoin Paris Agreement: Indonesian Minister
Indonesia's Environment Minister Jumhur Hidayat says other countries should deal with Trump quitting the Paris Accord.Indonesia Banks On EU as Trump's 10% Tariff Kicks In
Indonesia wants to fast-track its European Union (EU) trade deal as Jakarta tries to find alternatives to the tariff-agressive US.US Slaps 10% Tariff on Indonesia over Forced Labor
A new 10% tariff on Indonesia following a forced labor probe will take effect on Friday before noon.Indonesia Secures Partial WTO Win Over EU Fatty Acid Duties
Indonesia wins a partial WTO ruling against EU anti-dumping duties on fatty acids, but most of its legal claims are rejected.US-China Rivalry in ASEAN Is Here to Stay, Trump or No Trump
Whoever is the US president, major power competition will remain, Indonesian presidential aide Mari Elka Pangestu tells ASEAN.Germany Says Trade Still Unharmed by Indonesia’s One-Gate Export
Indonesia’s export system shake-up has no immediate impact on trade, palm oil importer Germany says.From 32% to 10% to 18%: Indonesia Lives Under Trump's Tariff Uncertainties
Indonesia has been trying to navigate US trade uncertainties, but officials are confident that the tariffs won't derail exports.US to Give Tariff Exemptions for Indonesian Spare Parts, Plantation Commodities
Indonesia has signaled US tariff exemptions for its exports of spare parts and plantation commodities,The Latest
Chandra Asri Group Receives Trade Finance Excellence Award, Reinforcing Its Role in Indonesia’s Industrial Development
Chandra Asri Group receives the Trade Finance Excellence Award at CIMB Niaga Business Summit 2026.AEON MALL Deltamas Brings 11 Sports and Creative Competitions to AEONLYMPIC 2026
AEON MALL Deltamas hosts AEONLYMPIC 2026, featuring 11 sports and creative competitions, with more than 3,100 participants.Indonesian Stocks Extend Losses for Third Day, Fall 3.64% to 4,996
Indonesian stocks fell 3.64% on Monday, extending losses for a third straight session amid MSCI concerns and tighter trading limits.Prabowo Calls Meeting on Forest Fires as Haze Reaches Jakarta, Singapore
Prabowo summons senior officials to discuss forest fires as smoke reaches Jakarta and Malaysia pushes for regional action.Jakarta Outranks Amsterdam in Global Public Transport Survey
Jakarta climbs two places to 15th in Time Out's 2026 public transport survey, with its governor citing better network integration.Most Popular
