Indonesia signed the Indonesia-Eurasia Economic Union Free Trade Agreement (I-EAEU FTA) in St. Petersburg, Russia (21/12). The signing took place during the EAEU Supreme Council Meeting, with Indonesian Minister of Trade, Budi Santoso, representing the government. The agreement involves five EAEU member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, together with the President of the Eurasian Economic Commission.

The signing was witnessed by EAEU heads of state, including Russian President Vladimir Putin.

Expanding Export Markets and Economic Opportunities

Minister Budi Santoso stated, “The EAEU region will expand Indonesia’s non-traditional trading partners, supporting the diversification of Indonesia’s export markets, which aligns with President Prabowo Subianto’s directive to strengthen Indonesia’s position in the global economic architecture.” Indonesian Ambassador to Moscow, Jose Tavares, also attended the ceremony.

The FTA connects Indonesia to a market of around 182.8 million people with a nominal GDP of about USD 2.5 trillion. The agreement is expected to generate positive impacts, including economic growth of up to 2.36% and wider export opportunities for Indonesia.

Key Features of the I-EAEU FTA

Negotiations between Indonesia and the EAEU began in 2023 and concluded within two years. Indonesia achieved liberalization of approximately 85% of tariff lines. When fully implemented, the agreement is expected to open over 90% of the EAEU market for Indonesia’s main export products.

The I-EAEU FTA provides legal certainty, transparency, and a predictable trade environment. It covers sectors including agriculture, manufacturing, energy, transportation, logistics, digital economy, and sustainable value chain development, benefiting both businesses and micro, small, and medium enterprises (MSMEs).

Opportunities for Businesses and SMEs

The Indonesian government is committed to ensuring the agreement is implemented effectively and transparently, supporting businesses and MSMEs. Companies are encouraged to utilize available facilities and make Indonesia a production base and long-term partner for EAEU countries.

The agreement also serves as a platform to enhance connectivity, promote energy transition, strengthen global supply chains, and develop the digital economy between Indonesia and the Eurasia region.

EAEU: Economic Union of Eurasia

The Eurasia Economic Union (EAEU) includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Established on 1 January 2015, it facilitates economic integration, free trade, and the movement of goods, services, capital, and labor. The EAEU functions as a free trade zone and customs union with broad regional influence.

PHOTO: MINISTRY OF FOREIGN AFFAIRS

This article was created with AI assistance.