Jakarta – The government recently announced that Indonesia had substantially concluded the trade pact negotiations with the Russia-led Eurasian Economic Union (EAEU).
The EAEU encompasses Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. Jakarta has been pursuing a free trade agreement (FTA) with this grouping as it diversifies its export markets. It took about 5 rounds of negotiations and a number of so-called intersession meetings since the talks officially began in late 2022.
Senior Minister Airlangga Hartarto announced the pact's latest developments as part of President Prabowo Subianto's first state trip to Russia. Andrey Slepnev, the minister in charge of the group's trade affairs, was also present during the announcement.
According to a ministerial press statement, both sides will soon begin the ratification process and finalize the technical details. Indonesia is also betting on this upcoming pact to open up the market access for its crude palm oil (CPO), copra, coffee, natural rubber, and cocoa butter. This pact is expected to boost EAEU's Indonesia-bound exports of wheat, phosphate, and coal, to name a few.
"I hope both sides can immediately follow up [on this conclusion] by completing all the necessary stages of the process. This way, we can sign the agreement this year," Airlangga was quoted as saying in a press statement.
Likewise, Slepnev also promised that the bloc would sign the agreement this year. "We are also committed to doing our best to complete the necessary technical requirements," Slepnev said.
A joint feasibility study reported that the agreement could give a major boost to Indonesia's exports in the agricultural and resource-based manufacturing sectors. In the first three months of 2025, Indonesia-EAEU trade amounted to $1.57 billion, up by 84.63 percent compared to the same period the previous year. Indonesia is also opening up investment opportunities to EAEU nations in sectors such as industrial processing, transportation, mining, and more. Official statistics showed that the Southeast Asian country attracted $273.7 million in investments from the Eurasian bloc throughout last year.
Indonesia said that it could become the EAEU's gateway for logistics and distribution access to Southeast Asia. The EAEU can become an entry point for Indonesia's leading commodities to the Eastern European and Central Asian markets.