“Indonesian goods exported to the EU will enjoy zero tariffs. This presents a valuable opportunity for our MSMEs to adopt an export-driven approach," Coordinating Minister for Economic Affairs Airlangga Hartarto said here, Friday.
With 27 member countries, the European market is highly promising, Hartarto stated.
The IEU-CEPA negotiations, concluded after a decade, are slated for ratification this September.
Hartarto emphasized that the trade agreement reflects the government’s strategy to expand market access amid tariff barriers and global economic uncertainty.
In addition to international expansion, he underscored the government’s commitment to strengthening domestic production and consumption through strategic policies.
“Production and industry must be stimulated, and the use of KUR (People’s Business Credit) in the production sector should be increased and stabilized,” he said.
He also called on businesses and the public to remain optimistic about achieving the 2025 economic growth target of 5.2 percent.
“We’ve seen Rp924 trillion (US$55 billion) in investment, a 32.5 percent annual rise in capital goods imports, and a 17.94 percent increase in government capital spending,” he noted.
The government has also distributed Rp61 trillion (US$3.6 billion) in economic assistance to boost purchasing power and implemented deregulation to simplify licensing for SMEs.
Hartarto expressed confidence in expanding business opportunities for Indonesia’s 57 million MSMEs—considered the backbone of the economy—through digital marketing and e-governance.
“We hope these efforts will encourage MSMEs to register in the digital system, supported by the development of e-governance, which will be vital moving forward,” he concluded.
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Translator: Arnidhya Nur, Resinta Sulistiyandari
Editor: Aditya Eko Sigit Wicaksono
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