Indonesia Ready to Seal Free Trade Pact with Eurasian Economic Union

KBRN, Jakarta: Indonesia is preparing to welcome the signing of the Indonesia–Eurasian Economic Union Free Trade Agreement (I–EAEU FTA), a landmark deal expected to boost market access and strengthen economic ties with the region.

The agreement is scheduled to be signed during the EAEU Summit in St. Petersburg, Russia, on December 20–21, 2025. Indonesian Trade Minister Budi Santoso emphasized that the real challenge lies not only in finalizing the agreement but in ensuring its effective implementation.

“The most important thing is how this trade agreement, once signed, can be fully utilized,” Minister Budi said at the Strategic Forum on International Trade: Indonesia–EAEU FTA in Jakarta on Monday, December 15, 2025, as quoted by Antara.

He stressed that without readiness from businesses and strong partnerships, the FTA risks becoming a mere document rather than a driver of trade.

To address this, the Ministry of Trade is encouraging the creation of communication platforms and business partnerships between Indonesia and EAEU member states. “If we don’t have partners, the FTA will not work well. Implementation is what truly matters,” he added.

Indonesia’s trade with the EAEU has shown steady growth. In 2024, Indonesian exports to the bloc reached USD 1.9 billion, with total trade valued at USD 4.5 billion. Over the past five years, bilateral trade has grown at an average annual rate of 21.45 percent, reflecting positive momentum.

Minister Budi noted that the FTA could potentially double total trade, opening access to a vast market of nearly 200 million people.

The agreement aligns with Indonesia’s commitment to promoting fair, balanced, and non-discriminatory international trade while expanding partnerships to support export growth and national economic development.

“We hope this promising market will enhance total trade and improve export performance in a fair way, contributing to prosperity for both sides,” Budi said.

Director General of International Trade Negotiations Djatmiko B. Witjaksono explained that the initial phase of the FTA will focus on goods trade, while services, investment, and broader cooperation may be included later. Following the signing, ratification by each EAEU member state is expected, with implementation targeted by late 2026 or early 2027.

“That is why the EAEU FTA is an important milestone we aim to conclude in 2025, alongside several other agreements,” Djatmiko remarked. ***