ASIATODAY.ID, ST. PETERSBURG — Indonesia and Kazakhstan have officially signed a Free Trade Agreement (FTA) as part of the broader Indonesia–Eurasian Economic Union (EAEU) Free Trade Agreement, marking a major milestone in Indonesia’s expanding trade diplomacy across the Eurasian region.
The historic signing took place in St. Petersburg, Russia, on Sunday, 21 December 2025, during the EAEU Summit, and is expected to significantly strengthen bilateral trade ties.
Indonesia and Kazakhstan are now targeting bilateral trade volume of up to USD 2 billion within the next three to five years.
Indonesia’s Ambassador Extraordinary and Plenipotentiary to Kazakhstan and Tajikistan, Dr. M. Fadjroel Rachman, said the FTA provides a solid foundation for accelerating economic integration between Indonesia and Eurasia.
His remarks echoed those of Bakytzhan Sagintayev, Chairman of the Eurasian Economic Commission, who stated that the implementation of the Indonesia–EAEU FTA could double Indonesia’s trade with EAEU member states.
Signed During EAEU Summit, Witnessed by Regional Leaders
The agreement was signed during the Eurasian Economic Union Summit on 21–22 December 2025, attended by all five EAEU member states—Kazakhstan, Russia, Armenia, Belarus, and Kyrgyzstan. Russian President Vladimir Putin was among the leaders present at the event.
Indonesia was represented by Minister of Trade Budi Santoso, accompanied by Ambassador Fadjroel Rachman and Ambassador Jose Tavares. The EAEU side was represented by deputy prime ministers from each member state, including Serik Zhumangarin of Kazakhstan and Alexey Overchuk of Russia.
Gateway to the Eurasian Market
The Eurasian Economic Union represents a combined market of approximately 180 million people with a GDP of around USD 2.56 trillion. Indonesia, meanwhile, has a population of 285 million—the world’s fourth largest—and a GDP of approximately USD 1.4 trillion.
“Kazakhstan, with a GDP per capita of about USD 15,000 and a population of 20 million, plays a strategic role in ensuring the success of the Indonesia–EAEU FTA,” Ambassador Fadjroel said quoted on January 2, 2026.
Aligned with Indonesia’s National Economic Vision
According to Ambassador Fadjroel, the agreement aligns with President Prabowo Subianto’s Asta Cita vision, particularly in expanding export markets, strengthening national economic resilience, and advancing Indonesia’s Pancasila-based economic development model.
Indonesia’s Minister of Trade Budi Santoso emphasized that the FTA would open, expand, and diversify Indonesia’s export destinations, while also unlocking new sources of investment, especially in the manufacturing and agricultural sectors.
Preferential Tariffs Up to 90.5 Percent
The Indonesia–EAEU FTA consists of 15 chapters, covering market access, trade facilitation, and economic cooperation. Under the agreement, preferential tariffs of up to 90.5 percent will be granted to Indonesian products, representing 95.1 percent of total EAEU imports from Indonesia.
Key Indonesian export products expected to benefit include palm oil and its derivatives, cocoa, coffee, textiles, footwear, fisheries products, natural rubber, furniture, and electronics.
Conversely, Indonesia will expand market access for EAEU products such as fertilizers, iron and steel, ferroalloys, crude petroleum, and chemical products.
Indonesia–Kazakhstan Trade Target: USD 2 Billion
Bilateral trade between Indonesia and Kazakhstan reached USD 691.3 million in 2022, before declining to USD 398.4 million in 2024. With the FTA now in place, both countries are confident trade volumes can rebound and surge to USD 1.5–2 billion.
This target is further supported by planned improvements in logistics connectivity, direct flights, visa facilitation, investment protection, and cooperation in the energy and mineral sectors, involving major enterprises such as KazMunayGas, Eurasian Resources Group, Pertamina, and Mind.ID.
Indonesian Embassy Calls for Rapid Follow-Up
The Indonesian Embassy in Astana has urged swift action to develop a strategic roadmap to capture emerging opportunities, particularly in Kazakhstan.
Priority areas include logistics coordination, tariff harmonization, and transportation efficiency to reduce trade costs and enhance competitiveness.
The approach follows a penta-helix diplomacy model, engaging government, business communities, academia, civil society, and the media.
A New Economic Chapter for 2026
Ambassador Fadjroel described the signing of the Indonesia–EAEU FTA as one of the most meaningful economic milestones at the start of 2026, symbolizing a new wave of global trade integration between Southeast Asia and Central Asia.
Quoting renowned Kazakh philosopher and poet Abai Kunanbayev, he concluded:
“Friendship gives birth to friendship and creates shared prosperity.” (AT Network)
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