Indonesia-EAEU FTA to Boost Trade and Economic Cooperation

Strategic Trade Agreement

Indonesia is on the verge of signing a comprehensive Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), a significant economic bloc comprising Russia, Kazakhstan, Armenia, Belarus, and Kyrgyzstan ¹

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. This landmark agreement is expected to be finalized in early 2026 and promises to substantially enhance bilateral trade between Indonesia and EAEU member states.

Key Trade Benefits

The Indonesia-EAEU FTA is projected to eliminate tariffs on more than 90% of export products from Indonesia, covering a wide range of commodities including palm oil, textiles, footwear, and other manufactured goods ¹

. This tariff elimination is expected to make Indonesian products more competitive in the EAEU market, which comprises a consumer base of approximately 179.8 million people ²

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Market Opportunities and Trade Potential

The agreement is anticipated to more than double the current trade value between Indonesia and the EAEU. In 2024, Indonesia's exports to EAEU countries reached US$ 1.9 billion, representing a 47.03% increase from the previous year's US$ 1.3 billion ²

. This growth trajectory is expected to continue with the FTA providing additional impetus.

Sector-Specific Opportunities

Key Indonesian export commodities that are likely to benefit from the FTA include:

1. Palm oil and derivatives
2. Textiles and textile products
3. Footwear and leather goods
4. Processed food products

These sectors are expected to gain significant market access in EAEU countries, particularly in Russia and Belarus, where demand for such products remains robust.

Implementation and Promotion

To maximize the benefits of the FTA, Indonesian Trade Minister Budi Santoso has emphasized the need for comprehensive promotion and information dissemination to both Indonesian and EAEU businesses ³

. The minister has also held bilateral meetings with EAEU counterparts to identify and promote specific products that can benefit from the agreement.