Indonesia and EAEU Seal Free Trade Agreement

Deal Aims to Boost Trade and Investment

Indonesia and the Eurasian Economic Union (EAEU) have finalized a free trade agreement. This landmark deal, which is expected to be signed this year, aims to strengthen economic bonds and boost trade between the two regions.

Agreement Details

The Indonesian government and the EAEU have substantively concluded negotiations on a free trade agreement. Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, expressed optimism. He said the agreement would be signed this year, based on an official statement released in Russia.

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“The Eurasian Economic Commission is ready to sign the agreement this year and is committed to doing its best to complete the necessary technical requirements,”

—Andrey Slepnev, Minister in charge of Trade of the Eurasian Economic Commission (EEC)

Trade between Indonesia and the EAEU has grown substantially. Trade volume increased to US$1.57 billion during the first quarter of 2025, an 84.63% increase compared to the prior year (World Bank Data).

Trade Prospects

This agreement will allow Indonesia to export more of its key products, including palm oil and its derivatives, copra, coffee, rubber, and cocoa butter. Indonesia also anticipates increased imports from the EAEU, such as wheat and fertilizer.

Indonesia hopes to attract investments from EAEU nations in sectors like processing industries, transportation, mining, and agriculture. The trade agreement will allow Indonesia to broaden its export markets. The Eurasian region’s average GDP growth is 4.4 percent, which is higher than the global average. Investment from the EAEU region into Indonesia totaled US$273.7 million in 2024.