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—
Indonesia and the Economic Union
Eurasia
(EAEU) officially agreed
Free Trade Agreement
Indonesia-EAEU (Indonesia-EAEU FTA) which includes opening goods market access, trade facilitation and economic cooperation.
In this agreement, the EAEU provides tariff preferences of 90.5 percent of the total tariff lines, which cover 95.1 percent of the total value of EAEU imports from Indonesia.
This agreement is expected to expand access for Indonesian products to the Eurasian region while strengthening the legal framework for trade between both parties.
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The agreement was marked by the signing of an agreement by the Indonesian Minister of Trade Budi Santoso together with the ranks of the Eurasian Economic Union Commission in St Petersburg, Russia, on Sunday (21/12) on the sidelines of the Eurasian Economic Union High Level Conference (Summit).
This signing was witnessed by heads of government of EAEU member countries including Russian President Vladimir Putin.
In his statement, Budi conveyed greetings from President Prabowo Subianto to the leaders of the EAEU countries.
He said the Indonesia-EAEU FTA marked a new chapter of strategic partnership between Indonesia and the Eurasian region which has large market potential, strong resources and complementary products in the global trade chain.
“Following up on the President’s direction to open new markets for Indonesian business actors, today I signed a historic trade agreement with the Eurasian Economic Union,” said Budi in his official statement.
“The Indonesia-EAEU FTA is not only about reducing tariffs, but rather about building mutually beneficial and sustainable economic bridges. This signing is also an effort to diversify Indonesia’s export destination markets, and potential sources of new investment, especially those related to the manufacturing and agricultural sectors,” he continued.
Indonesia-EAEU FTA negotiations will begin in 2023 and be completed within two years.This agreement consists of 15 chapters, which include, among other things, opening up market access for goods, trade facilitation, and economic cooperation in various sectors.
With the tariff preferences provided, a number of superior Indonesian products have the opportunity to gain wider and more competitive market access in the Eurasia region.
“With a tariff preference of up to 90.5 percent of the total tariff line of the Eurasian Economic Union, Indonesia’s superior products will gain wider and more competitive market access. This will encourage an increase in exports of palm oil and its derivatives, footwear, textiles and textile products, fishery products, natural rubber, furniture and manufactured products such as electronics,” explained Budi.
Apart from opening up export opportunities, this agreement also provides legal framework certainty and transparency for the business world.
The government stated that it would ensure that the implementation of the agreement was effective and could be utilized by business actors, including micro, small and medium enterprises (MSMEs).
In terms of trade, Indonesia’s total trade with the EAEU in January-October 2025 was recorded at US$4.4 billion or the equivalent of Rp. 73.75 trillion (assuming an exchange rate of Rp. 16,761 per US dollar) with Indonesian exports of US$ 1.76 billion and imports of US$ 2.64 billion.
In 2024, total trade between the two parties will reach US$4.52 billion or IDR 75.75 trillion.The Indonesia-EAEU FTA is Indonesia’s second trade agreement with the European region after the agreement with EFTA which has been implemented since November 1 2021.
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