Airlangga Confident Indonesian Products Can Enter Europe With 0% Tariffs

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Airlangga Confident Indonesian Products Can Enter Europe With 0% Tariffs

Tuesday, 15 Jul 2025

The Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) is set to be finalized soon. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the official signing of this trade agreement will take place in the third quarter of this year.

President Prabowo Subianto will also announce this trade agreement during a meeting with European Commission President Ursula von der Leyen in Brussels, Belgium.

"The first signing will be in the third quarter of this year and in Jakarta. But we are waiting for the President's announcement, so we don't have any spillovers," Airlangga said in a statement broadcast virtually by the Presidential Secretariat on Sunday (July 13, 2025).

He believes this agreement will be a new achievement for Indonesia amidst significant global economic uncertainty. He said that Indonesian exports to the European Union could be subject to a 0% tariff.

"This is certainly a new milestone amidst this uncertainty. This means that Indonesia and the EU will be able to import our products into Europe with zero tariffs," Airlangga said.

A study conducted by the Center for Strategic and International Studies (CSIS) (2021) and a Sustainability Impact Assessment by the European Commission (2020) reinforce optimism regarding the economic benefits of the IEU-CEPA for Indonesia.

According to a statement from the Coordinating Ministry for Economic Affairs, the two studies predict that Indonesia's GDP will grow by 0.19%, with an additional US$2.8 billion in national income, and that Indonesian exports could potentially increase by up to 57.76% over the next three years with the IEU-CEPA trade agreement.