Indonesia has signed a free trade agreement (FTA) with the Eurasian Economic Union (EAEU) as part of efforts to diversify exports and strengthen its foothold in a “nontraditional market” of nearly 200 million people. The agreement is expected to expand Indonesia’s access to Armenia, Russia, Belarus, Kyrgyzstan and Kazakhstan, among other Eurasian countries. Designed to provide a comprehensive legal framework and greater certainty for businesses, the pact comes amid strong growth in bilateral trade between Indonesia and the EAEU bloc. In 2024, total trade between Indonesia and the EAEU reached US$4.52 billion, with an average annual growth rate of 21.45 percent over the past five years. The government aims to double this trade volume by leveraging the agreement to reduce dependence on traditional export markets.
Trade Minister Budi Santoso expressed optimism about the deal, saying it would “establish a strategic foundation to boost trade, investment and diverse forms of mutually beneficial economic cooperation.” He added that closer commercial ties between businesses and relevant stakeholders would be critical to ensure the agreement’s swift and effective implementation.
During a meeting with Eurasian Economic Commission (EEC) Trade Minister Andrey Slepnev in St. Petersburg on Sunday, Budi proposed the establishment of an Indonesia-EAEU Business Council to facilitate communication and strengthen linkages between private sector players from both sides.
Slepnev described Indonesia as a strategic partner for the EAEU, citing the country’s strong economic growth in recent years. He said the commission viewed the FTA as a key instrument to develop a mutually beneficial trade market, particularly in expanding market access and acquiring and utilizing new technologies.
Djatmiko Bris Witjaksono, director general of international trade negotiations at the Trade Ministry, said the agreement marked a strategic step in expanding Indonesia’s market access to prospective nontraditional regions. He added that businesses were expected to begin benefiting from the pact by the end of 2026 or, at the latest, in 2027, in line with Indonesia’s broader push to finalize a series of trade agreements with international partners.
Several Indonesian export sectors are expected to benefit from the deal. Officials highlighted strong potential for palm oil and its derivatives, agricultural commodities such as coffee, tea, cocoa and spices, as well as automotive components and spare parts. The automotive segment is seen as particularly promising following the withdrawal of some European firms from the Russian market. The fisheries sector, especially shrimp, processed seafood and tuna, also offers significant opportunities, although challenges remain, including the need to secure export approvals for Indonesian fishery products.
Beyond market access, the FTA is expected to deepen sector-specific cooperation. State-owned pharmaceutical firm PT Bio Farma has established partnerships with EAEU members, including vaccine exports to Kyrgyzstan through UNICEF and joint research initiatives with Russia. The company is also exploring collaboration with Belarus, including plans for polio vaccine registration and the development of multivalent vaccines.
December 23, 2025, The Jakarta Post
(https://www.thejakartapost.com/business/2025/12/23/ri-inks-trade-deal-with-eaeu-eyes-eurasian-market-expansion.html)