Solo, July 21, 2025 – The Europe Today: Former Indonesian President Joko Widodo (Jokowi) has praised President Prabowo Subianto for his effective negotiation skills and personal diplomacy in securing a landmark trade deal with the United States and concluding the long-pending Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
Speaking to the press following a meeting with President Prabowo at his private residence in Solo on Sunday evening, Jokowi commended the newly secured agreement with the United States, which will reduce import tariffs on Indonesian goods from 32 percent to 19 percent.
“This is an extraordinary achievement. The 19 percent rate is the lowest among ASEAN countries,” Jokowi stated.
He noted that the reduction in tariffs is expected to significantly enhance the competitiveness of Indonesian exports in the US market.
Jokowi also revealed that during their discussions, President Prabowo provided updates on the successful conclusion of the IEU-CEPA negotiations, which had been ongoing for over a decade. The agreement, which will eliminate tariffs on Indonesian products entering the European Union, is seen as a crucial step toward expanding Indonesia’s trade footprint in the European market.
“Reaching a consensus on IEU-CEPA was a highly complex and lengthy process, but President Prabowo’s negotiation capabilities and personal approach were instrumental in bringing both parties to agreement,” Jokowi remarked.
With tariffs on Indonesian goods entering the EU set to be reduced to zero, the IEU-CEPA is anticipated to significantly boost Indonesia’s export competitiveness in Europe.
The combination of reduced tariffs under the US deal and the IEU-CEPA is projected to enhance the global competitiveness of Indonesian products in major international markets.
In a statement posted on Truth Social, former US President Donald Trump confirmed the bilateral agreement with Indonesia, stating it would “open up Indonesia’s entire market to the United States for the first time in history.”
According to Trump, under the deal, Indonesia will face a 19 percent tariff on its exports to the US, while American goods will be exempt from both tariff and non-tariff barriers when entering Indonesia.
Trump also highlighted that Indonesia has agreed to significant purchases from the US, including US$15 billion in energy, US$4.5 billion in agricultural products, and 50 Boeing aircraft.
The trade agreements mark a significant milestone in Indonesia’s international trade policy and are expected to foster stronger economic ties with both the United States and the European Union.
