Indonesia–EAEU Free Trade Agreement: Progress and Strategic Outlook
Indonesia is making significant strides toward finalizing a Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), comprising Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. This agreement aims to enhance trade relations and economic cooperation between Indonesia and the EAEU bloc.
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5/30/20251 min read
Negotiation Progress and Timeline
Negotiations for the Indonesia–EAEU FTA commenced in December 2022. As of May 2025, both parties have expressed optimism about concluding the agreement within the year. Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, noted that most key issues have been resolved, and the process is now in the finalization stage. A significant meeting between Minister Hartarto and EEC Trade Minister Andrey Slepnev in Jakarta on May 29, 2025, underscored this progress.
Furthermore, President Prabowo Subianto is scheduled to visit Russia in June 2025, where the signing of the FTA is anticipated.
Strategic Importance of the EAEU Market
The EAEU represents a strategic market for Indonesia, with a combined population exceeding 180 million. In 2024, trade between Indonesia and the EAEU reached approximately USD 4.09 billion, marking an 8% increase from the previous year. Indonesia's primary exports to the EAEU include palm oil, copra, televisions, and electrical machinery, while imports consist mainly of coal, fertilizers, semi-finished iron and steel products, and wheat.
Economic Cooperation and Digital Collaboration
Beyond traditional trade, the FTA encompasses an Economic Cooperation Chapter, focusing on sectors such as logistics, transportation, telecommunications, innovation, sustainable development, and digital initiatives. This chapter aims to foster deeper economic ties and collaborative opportunities between Indonesia and the EAEU.
In alignment with this, the Indonesia–EAEU Digital Technology Dialogue was held in Bali on September 24, 2024. This event facilitated connections between digital businesses from both regions, promoting networking, idea exchange, and exploration of new cooperation opportunities.
Outlook and Implications
The impending Indonesia–EAEU FTA is poised to significantly enhance Indonesia's trade relations with the EAEU bloc, offering expanded market access and diversified economic partnerships. For Indonesian businesses, this agreement presents opportunities to penetrate new markets and collaborate in various sectors, including digital technology and sustainable development.
As the finalization of the FTA approaches, stakeholders from both regions are encouraged to prepare for the forthcoming changes and opportunities that this agreement will bring.
For more information and updates on the Indonesia–EAEU FTA, please refer to official communications from the Indonesian Ministry of Economic Affairs and the Eurasian Economic Commission.
