Airlangga Touts 0% EU Tariffs as Trade Becomes Core Growth Engine

JAKARTA, Investortrust.id — Coordinating Economic Affairs Minister Airlangga Hartarto said Indonesia has secured zero percent tariffs to the European Union starting in 2027 under the Indonesia-European Union Comprehensive Economic Partnership Agreement on Friday, Feb 13, 2026 in Jakarta, positioning trade expansion as a central growth engine as the government seeks to multiply exports and accelerate job creation. He delivered the remarks at the Indonesia Economic Outlook 2026 at Wisma Danantara.

“This access opens a market equivalent to 14.7% of global GDP for Indonesia,” Airlangga said, referring to the European Union market that will gradually eliminate tariffs on Indonesian products. He added that broader economic diplomacy under President Prabowo Subianto was designed to unlock nearly all major global markets.

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Beyond the EU, Indonesia advanced negotiations through the Indonesia-Canada Comprehensive Economic Partnership Agreement and cooperation with the Eurasian Economic Union, while also initiating a growth partnership with the United Kingdom. An agreement with the United States was expected to be signed soon.

Airlangga cited the textile industry as an example, saying exports could increase up to tenfold within the next decade if market access was fully optimized. He stressed that expanded trade would generate larger employment opportunities and strengthen industrial capacity.

“The poverty rate fell to 8.25% and the Gini ratio improved to 0.36. This shows that welfare distribution continues to improve,” he said. He added that open unemployment declined to 4.74% year-on-year, with 2.71 million additional workers absorbed as a result of realized investments.

“With a strong investment foundation, simplified bureaucracy, and legal certainty, we are optimistic that Indonesia can take off toward becoming an advanced nation,” Airlangga said.

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He noted that flagship programs such as the free nutritious meal initiative, the Red and White Village Cooperative, and the three million housing program were expected to become new growth sources that absorb labor, accelerate productivity, and mobilize non-state budget financing, including through Danantara.

President Prabowo Subianto praised Airlangga and the economic team for their performance in the first year of government while reminding them that nation building required endurance and courage. “We have worked just over one year, but we can already feel that we have achieved a great deal,” Prabowo said.

“In building a nation, it is like a long march. A long journey always begins with one step, and we are grateful that we have taken many steps,” he added.