Executive Summary

Key insights and market outlook

Indonesia and the Eurasian Economic Union (EAEU) have signed a Free Trade Agreement (FTA) in St. Petersburg, Russia, aiming to boost bilateral trade ¹

². The agreement, reached after two years of negotiations, will give Indonesia preferential tariffs on 90.5% of EAEU's tariff lines, providing access to a market of 180 million people with a GDP of US$ 2.56 trillion ².

Full Analysis

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Deep Dive Analysis

Indonesia and Eurasian Economic Union Sign Historic Free Trade Agreement

Strategic Trade Partnership

Indonesia and the Eurasian Economic Union (EAEU) have formalized their trade relationship through a comprehensive Free Trade Agreement (FTA) signed in St. Petersburg, Russia ¹

². This landmark agreement, achieved after two years of intense negotiations, marks a significant expansion of Indonesia's trade footprint into the Eurasian region.

Market Access and Economic Benefits

The FTA will provide Indonesia with preferential tariff access to a market of 180 million people with a combined GDP of US$ 2.56 trillion ²

. In return, Indonesia offers EAEU access to its 281.6 million population with a GDP of US$ 1.4 trillion and a rapidly growing middle class ¹. The agreement covers 90.5% of EAEU's tariff lines, significantly enhancing Indonesia's export potential to the region.

Trade and Investment Implications

This strategic trade agreement is expected to create substantial economic opportunities for both parties. For Indonesia, it represents a crucial diversification of its trade partners beyond traditional markets. The EAEU, comprising Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, offers new avenues for Indonesian exports, particularly in sectors where the country has competitive advantages.

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