Latest news with #Airlangga
The Star
2 days ago
- Business
- The Star
EU free trade talks to wrap up this month
South-East Asia's largest economy and the European Union are expected to conclude talks over an economic cooperation deal that will relax trade barriers this month, Jakarta's top economic minister said. Indonesia and the 27-member European bloc have been negotiating since 2016 to strike a deal that is expected to increase trade and investment. Ties have been frayed by a proposed import ban on products linked to deforestation into the EU that has angered Indonesia because it is a major palm oil exporter. However, Jakarta's chief Economic Minister Airlangga Hartarto told an online briefing on Saturday that talks were nearing their conclusion. 'We already have entered the final round. This means that we have resolved almost all issues,' Airlangga told reporters. He said in an earlier statement Indonesia and the EU would announce the conclusion of the negotiations by the end of June. Airlangga did not disclose any agreements that would be part of the deal. He said the next step was a legal drafting process to be completed in a 'short time' before the two parties could ratify the agreement. — AFP
The Star
2 days ago
- Business
- The Star
Indonesia and EU are close to finalising major trade pact
JAKARTA (Bernama): Indonesia and the European Union are moving closer to finalising a major trade deal, with substantive negotiations on the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) nearing completion, Coordinating Minister for Economic Affairs Airlangga Hartarto said. He said the agreement has entered its final phase after nearly a decade of negotiations, with both sides aiming to conclude discussions by the end of June. "This is an important milestone in today's unpredictable global economy and highlights the need for strong international cooperation,' he stated in a statement. Airlangga met with EU Trade and Economic Security Commissioner Maroš Šefčovič in Brussels on Friday. The two sides agreed to resolve remaining issues and finalise a deal encompassing trade, sustainable growth, and environmental standards, with a key breakthrough on the long-contentious sustainability framework. Airlangga also urged the EU to grant preferential access for Indonesian fishery products and welcomed signals of flexibility on deforestation rules for countries with existing trade agreements. Bilateral trade between Indonesia and the EU reached US$30.1 billion in 2024, with Jakarta posting a surplus of US$4.5 billion an increase from US$2.5 billion the previous year. Talks on the IEU-CEPA began in 2016 but have faced delays over regulatory and environmental concerns, with a final deal set to strengthen economic ties between South-East Asia's largest economy and the 27-member bloc. - Bernama
The Sun
3 days ago
- Business
- The Sun
Indonesia expects to conclude free trade talks with EU by end of June
JAKARTA: Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June. Airlangga Hartarto, the chief economic minister for Southeast Asia's biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday. 'Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025,' Airlangga Hartarto said in a statement. Indonesia will get zero tariffs for 80% of its export products to the EU and removal of non-tariff barriers, as it pushes for bigger market access for footwear, garments, palm oil and fishery products, Airlanga told a press conference later on Saturday. The EU has discussed Jakarta's rules on mandatory use of local content in products sold in Indonesian market, the automotive industry, trade of critical minerals and investment facilities, Airlangga said. Indonesia and the EU have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil. Airlangga said the bloc's deforestation rules were not part of the free trade negotiations, but Sefcovic had 'promised to provide special treatment towards Indonesia regarding deforestation.' He did not elaborate. Denis Chaibi, EU ambassador to Indonesia, said that talks were ongoing and 'we will communicate in details when we have an outcome.' Chaibi did not respond to a question about the special treatment. The EU is Indonesia's fifth-biggest trade partner, with total trade between the two reaching 27.3 billion euros ($31.11 billion) last year, according to the EU. Exports from the bloc were worth 9.7 billion euros in 2024, and it imported 17.5 billion euros' worth from Indonesia. Indonesian exports to the bloc could increase by more than 50% within three to four years after the trade deal takes effect, Airlangga said. Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country's export destinations as they deal with U.S. tariff challenges.
The Sun
3 days ago
- Business
- The Sun
Indonesia-EU free trade deal likely by end of June 2025
JAKARTA: Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June. Airlangga Hartarto, the chief economic minister for Southeast Asia's biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday. 'Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025,' Airlangga Hartarto said in a statement. Indonesia will get zero tariffs for 80% of its export products to the EU and removal of non-tariff barriers, as it pushes for bigger market access for footwear, garments, palm oil and fishery products, Airlanga told a press conference later on Saturday. The EU has discussed Jakarta's rules on mandatory use of local content in products sold in Indonesian market, the automotive industry, trade of critical minerals and investment facilities, Airlangga said. Indonesia and the EU have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil. Airlangga said the bloc's deforestation rules were not part of the free trade negotiations, but Sefcovic had 'promised to provide special treatment towards Indonesia regarding deforestation.' He did not elaborate. Denis Chaibi, EU ambassador to Indonesia, said that talks were ongoing and 'we will communicate in details when we have an outcome.' Chaibi did not respond to a question about the special treatment. The EU is Indonesia's fifth-biggest trade partner, with total trade between the two reaching 27.3 billion euros ($31.11 billion) last year, according to the EU. Exports from the bloc were worth 9.7 billion euros in 2024, and it imported 17.5 billion euros' worth from Indonesia. Indonesian exports to the bloc could increase by more than 50% within three to four years after the trade deal takes effect, Airlangga said. Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country's export destinations as they deal with U.S. tariff challenges. ($1 = 0.8777 euros)
The Star
7 days ago
- Business
- The Star
Indonesia vows to provide US tariff preferences before June talks
JAKARTA: Indonesia has committed to provide a list of preferred tariffs on US goods before starting a second round of talks with Washington scheduled this month, its senior economy minister said on Wednesday (June 4) after meeting the U.S. trade envoy. The US was Indonesia's third-biggest export destination as of last year, receiving shipments worth US$26.3 billion, according to Indonesian government data. The country booked a $16.8 billion trade surplus with the US in 2024. Economy Minister Airlangga Hartarto said Indonesia is ready to accelerate negotiations with the US before the July 3 deadline for reciprocal tariffs set by President Donald Trump in his drive to end US trade deficits with countries worldwide. The Trump administration has imposed a 32% tariff on Indonesian goods but that has been paused until July along with those targeting other countries. "We are ready to continue open dialogue and overcome negotiation challenges in tariffs and non-tariff barriers, digital trade... and the issues of economic and national security," Airlangga said in a statement. Reuters was seeking US comment. Airlangga, who met US Trade Representative Jamieson Greer on the sidelines of an OECD meeting in Paris, said Indonesia hopes that a "mature and measured" approach can open space for it to build a strong and long-term partnership with the US. As part of the negotiation, the government has said it wants to increase US energy imports by about $10 billion, including purchases of US fuel, crude oil and liquefied petroleum gas. Indonesia received shipments of US goods worth $26.3 billion in 2024, according to government data. The main Indonesian exports to the US. include electronics, apparel and clothing, and footwear. - Reuters
