Prabowo Courts EU Leaders in Brussels to Finalize Zero-Tariff Trade Deal
Martin Bagya Kertiyasa,
Heru Andriyanto
July 13, 2025 | 12:55 pm
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.
“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.
Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation.
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