ASIATODAY.ID, ST. PETERSBURG – The Government of Indonesia, represented by Coordinating Minister for Economic Affairs Airlangga Hartarto, and Minister of Trade of the Eurasian Economic Commission Andrey Slepnev, officially announced the substantive conclusion of the Indonesia–Eurasian Economic Union Free Trade Agreement (I-EAEU FTA) negotiations on the sidelines of the 28th St. Petersburg International Economic Forum (SPIEF 2025).
The milestone agreement was jointly declared by President of the Republic of Indonesia, Prabowo Subianto, and President of the Russian Federation, Vladimir Putin, following a bilateral meeting held at the Konstantinovsky Palace in St. Petersburg on June 19, 2025.
“I warmly welcome the agreement between Indonesia and Russia as part of our cooperation within the Eurasian Economic Union (EAEU),” said President Prabowo.
This marks a new chapter in economic cooperation between Indonesia and the EAEU member states—Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Since its launch in December 2022, the agreement underwent five negotiation rounds and multiple intersessional meetings, led by Indonesia’s Director General of International Trade Negotiations at the Ministry of Trade.
Both parties have now reached a substantive agreement across all negotiation areas. Technical finalization and ratification processes will follow shortly to expedite the implementation of the agreement.
The I-EAEU FTA opens new export opportunities for Indonesia, particularly for key commodities such as crude palm oil (CPO) and its derivatives, copra, coffee, natural rubber, and cocoa butter. In return, Indonesia expects increased imports from the EAEU of strategic goods such as wheat, phosphate, coal, chemical fertilizer raw materials, and semi-finished iron.
With a combined population exceeding 460 million across Indonesia and EAEU countries, this agreement is anticipated to significantly expand market access, streamline logistics, and enhance two-way investment flows.
In his statement, Coordinating Minister Airlangga expressed his appreciation to the negotiating team for achieving a substantive conclusion. “I hope both sides can promptly complete the necessary steps so that the agreement can be signed within this year,” he said.
Minister Slepnev also welcomed the achievement, emphasizing the benefits for modern trade relations and people-to-people connectivity. “The Eurasian Economic Commission is ready to sign the agreement this year and is fully committed to finalizing all the required technical elements,” he said.
The trade deal with the EAEU is part of Indonesia’s broader export market diversification strategy targeting non-traditional regions. The Eurasian region is seen as having vast potential for export destinations and strategic investment sources, with the EAEU’s average GDP growth reaching 4.4%, higher than the global average.
According to the Joint Feasibility Study, the implementation of the I-EAEU FTA is projected to boost Indonesia’s exports, particularly in agriculture and resource-based manufacturing. From January to March 2025, trade between Indonesia and the EAEU amounted to USD 1.57 billion, a sharp increase of 84.63% compared to the same period in the previous year.
Beyond trade, Indonesia is also opening doors to investment from EAEU countries in priority sectors including manufacturing, transportation, logistics, mining, and agriculture. Investment from the EAEU region showed a positive trend, reaching USD 273.7 million in 2024.
Through this trade agreement, Indonesia aims to become a logistics and distribution gateway to Southeast Asia, while the EAEU could serve as a corridor for Indonesian flagship commodities into Eastern Europe and Central Asia. (AT Network)
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