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Prabowo in Brussels to seal EU deal amid US tariff threat

Coordinating Economic Minister Airlangga Hartarto emphasized that “shifting global geopolitics”, a likely reference to Washington’s protectionist tariff hikes, has made Europe a more attractive alternative for Indonesian exports.

News Desk (The Jakarta Post)
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Sun, July 13, 2025 Published on Jul. 13, 2025 Published on 2025-07-13T13:41:15+07:00

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[PLACEHOLDER PIC] President Prabowo Subianto disembarks the presidential airplane at the Brasilia Air Force Base in the Brazilian capital city of Brasilia on July 7, 2025. Prabowo is slated to meet with his Brazilian counterpart Luiz Inacio Lula da Silva in a bilateral meeting to strengthen the cooperation between Indonesia and Brazil. [PLACEHOLDER PIC] President Prabowo Subianto disembarks the presidential airplane at the Brasilia Air Force Base in the Brazilian capital city of Brasilia on July 7, 2025. Prabowo is slated to meet with his Brazilian counterpart Luiz Inacio Lula da Silva in a bilateral meeting to strengthen the cooperation between Indonesia and Brazil. (Courtesy of Presidential Secretariat/Kris )

W

ith trade tensions between the United States and its partners on the rise, President Prabowo Subianto arrived in Brussels over the weekend in a bid to finalize Indonesia’s most ambitious trade pact yet, the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).

The trip follows the completion of substantive negotiations between Jakarta and Brussels, with both sides now preparing to sign the deal in Jakarta later this year.

Coordinating Economic Minister Airlangga Hartarto, speaking from Brussels, said that “all issues have now been resolved” and called the deal “a milestone” that could reshape Indonesia’s trade orientation in an increasingly uncertain global environment.

“This is certainly a milestone amid the uncertainty between Indonesia and the EU. Our products can now enter Europe at zero tariffs,” Airlangga told reporters in a video interview issued in Jakarta on Sunday.

He added that the agreement’s final signing is expected in the third quarter of 2025, pending a formal announcement from the President.

The IEU-CEPA spans 21 areas of cooperation, including trade in goods and services, investment, customs procedures, digital trade and sustainable growth. Key sectors like textiles, garments and fishery products are expected to benefit from reduced barriers.

Read also: Prabowo’s diplomatic temptation

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