ASIATODAY.ID, WASHINGTON – The Indonesian government is strengthening its global trade position by accelerating the conclusion of two strategic trade agreements: the Indonesia–Eurasian Economic Union Free Trade Agreement (I-EAEU FTA) and the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). These steps reaffirm Indonesia’s commitment to expanding market access, attracting investment, and enhancing national economic resilience.
Indonesia–EAEU FTA Nearing Finalization
Coordinating Minister for Economic Affairs Airlangga Hartarto held a virtual meeting on Thursday, July 9 with Andrey Slepnev, Member of the Board and Minister in Charge of Trade of the Eurasian Economic Commission (EEC). This meeting followed previous successful engagements, including the signing of a Joint Statement at the St. Petersburg International Economic Forum (SPIEF 2025), signaling substantial progress in the I-EAEU FTA negotiations.
Both parties expressed appreciation for the achievements of their respective negotiating teams and reaffirmed their strong commitment to completing the necessary domestic legal procedures to allow for the agreement’s signing by December 2025.
“We welcome the significant progress achieved by our negotiation teams. This marks a crucial step toward finalizing the I-EAEU FTA,” said Minister Airlangga.
Minister Slepnev echoed this sentiment, affirming that the EAEU is ready to conclude the legal processes internally with its member states. Both sides aim to complete legal scrubbing swiftly to pave the way for official signing.
Despite the rise of global protectionism, Indonesia–EAEU trade has seen a significant surge. In the first quarter of 2025, bilateral trade jumped by 84.4% to USD 1.57 billion. Investment from EAEU countries also doubled from 2023, reaching USD 273.7 million.
With a combined population of over 460 million, the EAEU offers tremendous potential for market expansion, making the I-EAEU FTA a critical pillar in Indonesia’s export diversification strategy.
Indonesia and EU Reaffirm Commitment to Finalize IEU-CEPA
On the same day, Minister Airlangga also held a virtual meeting with European Union Commissioner for Trade and Economic Security, Maros Sefcovic, from Washington DC. The meeting was a follow-up to their strategic discussion in Brussels in June 2025 on accelerating the conclusion of the Indonesia–EU CEPA.
“The IEU-CEPA will be a milestone in strengthening our bilateral economic relationship and fostering trade stability amid global uncertainty,” said Airlangga.
Both parties are currently finalizing technical issues and developing a more detailed timeline to achieve ratification. Commissioner Sefcovic explained that, unlike other trade agreements, the IEU-CEPA requires only EU-level approval—via a majority vote by EU Trade Ministers and the European Parliament—thus enabling a faster ratification process.
In 2024, trade between Indonesia and the EU reached USD 30.1 billion, with Indonesia recording a trade surplus of USD 4.5 billion, up from USD 2.5 billion in the previous year. The EU is Indonesia’s fifth-largest trading partner, while Indonesia ranks as the EU’s 33rd largest.
The implementation of IEU-CEPA is expected to open broader market access, provide greater legal certainty, and strengthen economic cooperation based on mutual respect and rules-based governance. (AT Network)
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