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View all search resultsIndonesia, EAEU conclude FTA talks, set to boost bilateral trade
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Courtesy of the Office of the Coordinating Economy Ministry)
I
ndonesia has officially concluded substantive negotiations for a free trade agreement (FTA) with the Eurasian Economic Union (EAEU), marking a significant milestone in its economic diplomacy with Russia and the broader Eurasian region. The announcement was made by Coordinating Economy Minister Airlangga Hartarto and EAEU Trade Minister Andrey Slepnev during the 28th St. Petersburg International Economic Forum (SPIEF 2025).
The agreement was formally acknowledged following a bilateral meeting between President Prabowo Subianto and Russian President Vladimir Putin at the Konstantinovsky Palace on June 19.
“I am very pleased with the agreement reached between Indonesia and Russia through our role in the Eurasian Economic Union,” President Prabowo said.
The FTA, involving EAEU member states Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, is expected to unlock new trade and investment opportunities. Negotiations, which began in December 2022, underwent five formal rounds and several intersessional discussions. Both parties have now agreed on all key negotiation areas and will move forward with technical finalization and ratification.
The agreement offers Indonesia improved access for key exports such as crude palm oil, coffee, natural rubber, copra and cocoa butter. In return, Indonesia aims to boost imports of strategic goods from EAEU countries, including wheat, coal, phosphate, fertilizers and semi-finished iron products.
With a combined market of over 460 million people, the FTA is projected to enhance market access, streamline logistics and spur two-way investments. Minister Airlangga expressed appreciation to the negotiation team, emphasizing hopes for the agreement to be signed by year-end. His sentiments were echoed by Minister Slepnev, who reaffirmed the EAEU’s commitment to concluding all technical requirements promptly.
The deal is part of Indonesia’s broader strategy to diversify its export markets beyond traditional partners. The EAEU’s economic potential, supported by an average GDP growth of 4.4 percent, above the global average, positions the region as a strategic export destination and investment source.
In the first quarter of 2025, bilateral trade between Indonesia and the EAEU reached US$1.57 billion, an 84.63 percent increase year-on-year. Investments from the region into Indonesia also saw positive growth, amounting to $273.7 million in 2024. The FTA could further solidify Indonesia’s role as a logistics hub for Southeast Asia and provide EAEU countries a gateway into Eastern European and Central Asian markets.
Joining Minister Airlangga at the meeting were Office of the Coordinating Economy Ministry secretary Susiwijono and Russian Ambassador to Indonesia Sergei Tolchenov.
