PALMOILMAGAZINE, RUSSIA – Indonesia has officially concluded substantive negotiations for a Free Trade Agreement (FTA) with the Eurasian Economic Union (I–EAEU FTA), marking a strategic breakthrough aimed at expanding the country’s access to key export markets.
The announcement was made by Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, alongside the Eurasian Economic Commission’s Minister of Trade, Andrey Slepnev, during the 2025 St. Petersburg International Economic Forum (SPIEF) in Russia.
This milestone follows the bilateral meeting between President Prabowo Subianto and Russian President Vladimir Putin at the Konstantinovsky Palace on June 19, 2025. “I welcome this agreement as an important step in strengthening Indonesia’s economic cooperation with the Eurasian region,” said President Prabowo, as quoted from the official release of Indonesia’s Coordinating Ministry for Economic Affairs.
Also Read: Indonesia-Russia Expand Cooperation in Palm Oil, Sugar, Fertilizer, Meat, and Research
The agreement paves the way for greater Indonesian exports, particularly in key agricultural and plantation commodities such as crude palm oil (CPO) and its derivatives, copra, coffee, natural rubber, and cocoa butter. On the other hand, Indonesia will import strategic goods from EAEU member states—Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia—including wheat, phosphate, coal, chemical fertilizer raw materials, and semi-processed metals.
With a combined population of over 460 million, the I–EAEU FTA is expected to enhance two-way trade flows, improve logistics access, and expand Indonesia’s market presence across Eastern Europe and Central Asia.
Minister Airlangga expressed appreciation to the negotiation team for their comprehensive work and emphasized the urgency of completing all technical and legal processes within this year. “I hope the agreement can be signed before the end of 2025,” he said.
EAEU’s Minister Andrey Slepnev echoed this commitment, stating, “This agreement is vital for modernizing our trade relations. The Eurasian Commission is ready to sign it this year and move forward with the remaining technical steps.”
The FTA forms part of Indonesia’s broader strategy to diversify its export markets beyond traditional partners. The Eurasian region is seen as an attractive destination due to its stable economic growth, with an average GDP rate of 4.4%, surpassing the global average.
According to a joint feasibility study, the agreement is projected to significantly boost Indonesia’s exports, especially in agriculture and natural resource-based industries. In Q1 2025, trade between Indonesia and EAEU reached USD 1.57 billion, a remarkable 84.63% increase compared to the same period in 2024.
Beyond goods trade, the agreement also encourages foreign direct investment from EAEU countries into Indonesia, particularly in natural resource processing, logistics, mining, and agribusiness sectors. In 2024, total EAEU investment in Indonesia reached USD 273.7 million, with signs of continued growth.
Through this FTA, Indonesia not only strengthens its position as a leading commodity exporter, but also aims to become a logistics hub for Southeast Asia, while offering EAEU nations a strategic entry point to the ASEAN market.
Also present during the announcement were Susiwijono, Secretary of the Coordinating Ministry for Economic Affairs, and Sergei Tolchenov, Russia’s Ambassador to Indonesia. (P3)
