TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto stated that all trade tariffs between Indonesia and the European Union (EU) will be reduced to zero percent after the two parties agreed to the Comprehensive Economic Partnership Agreement (CEPA). This agreement will be the framework for free trade cooperation between the two regions.
"Almost all of our tariffs are completed, almost all of them at 0 percent. So, I say this is a new breakthrough," Prabowo said in Brussels, Belgium, on Sunday, July 13, 2025, as quoted from the official statement of the president's communication team.
Prabowo, who previously served as the Minister of Defense, referred to this agreement as opening up wider access for Indonesian products to the European Union market. He viewed the region as having a very large economic potential.
"The European Union is a very large market, with a population of over 460 million. Their total GDP is very large, and their trade is also very large," he said.
He also emphasized that CEPA is a strategic step for Indonesia, especially amid the current uncertain global situation. This agreement is seen as an effort to expand trade networks with strong and reliable partners.
"Alhamdulillah (Praise to God), a historic event. In the current world of uncertainty, we have strong alternatives," he said.
When asked about the signing time and the ratification process of CEPA, Prabowo explained that it would take time. However, he hoped the process would not take long.
The CEPA agreement was reached in the meeting between President Prabowo Subianto and President of the European Commission Ursula von der Leyen in Brussels on Sunday, July 13, 2025. This agreement paves the way for Indonesian products to enter the European market more freely.
In her statement, Ursula von der Leyen expressed that Indonesia plays a vital role in the global supply chain. She referred to Indonesia as a leading supplier of essential goods for digital and green transitions in Europe.
CEPA, according to von der Leyen, will expand market access for Indonesian products such as agricultural products, automotive, services, and crucial raw materials. She also emphasized that supplies from Indonesia to Europe must adhere to safety, social, and environmental responsibility principles.
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