JAKARTA: Indonesia has signed a free trade agreement (FTA) with the Eurasian Economic Union (EAEU) to diversify exports and secure a stronger foothold in a promising “non-traditional market” of nearly 200 million people.
The trade pact promised to open up market opportunities for Indonesia in Armenia, Russia, Belarus, Kyrgyzstan, Kazakhstan and other countries of the Eurasian region.
The pact, designed to provide a comprehensive legal framework and certainty for businesses, is sealed against a backdrop of robust bilateral trade growth.
In 2024, total trade between Indonesia and the EAEU bloc reached US$4.52bil, with an average annual growth rate of 21.45% over the past five years.
The government aims to double this trade volume, leveraging the deal to reduce dependency on certain primary markets. Trade Minister Budi Santoso expressed optimism about the pact, stating it would “establish a strategic foundation to boost trade, investment and diverse forms of mutually beneficial economic cooperation.”
“To ensure swift and effective implementation, closer commercial ties must be forged between businesses and all relevant stakeholders,” he said in a statement.
During a meeting with Eurasian Economic Commission (EEC) Trade Minister Andrey Slepnev in St Petersburg on Sunday, Budi proposed the formation of an Indonesia-EAEU Business Council to facilitate closer communication and linkages between private sector actors.
Slepnev noted Indonesia’s rapid economic growth in recent years, stating that this dynamic positioned the country as a strategic partner for the EAEU and that the EEC viewed the FTA as a “key instrument to cultivate a mutually beneficial trade market.” — The Jakarta Post/ANN
