Indonesia has signed a free trade agreement (FTA) with the Russia-led Eurasian Economic Union (EAEU), marking a significant step in expanding its global trade reach.
The deal, concluded in St. Petersburg over the weekend, was witnessed by Russian President Vladimir Putin and leaders of the EAEU member states – Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Indonesia was represented by Trade Minister Budi Santoso.
The agreement, finalised after two years of negotiations, grants Indonesia preferential tariff rates on 90.5 percent of the union’s total tariff lines.
This opens access to a market of 180 million people, offering Southeast Asia’s largest economy new opportunities to boost exports.
“Indonesia’s leading products will gain broader and more competitive market access,” Minister Santoso said in a statement. He highlighted palm oil and its derivatives, footwear, textiles, fisheries, rubber, furniture and electronics as sectors expected to benefit most from the deal.
Bakytzhan Sagintayev, Chairman of the Board of the EAEU, said the FTA could potentially double two-way trade between Indonesia and the bloc.
Current trade figures show that between January and October 2025, total trade reached $4.4 billion, with Indonesian exports valued at $1.76 billion and imports from the EAEU amounting to $2.64 billion.
Indonesia’s top exports to the bloc include palm oil, coconut oil, coffee and cocoa, while the EAEU’s main exports to Indonesia are coal, potassium fertiliser, wheat and ferro-alloys.
The agreement is expected to strengthen Indonesia’s position as a key supplier of agricultural and industrial goods, while diversifying its trade partnerships beyond traditional markets in Asia and the West.
The deal also reflects Indonesia’s broader strategy to expand its trade footprint amid global economic uncertainty.
By securing preferential access to the EAEU, Jakarta aims to reduce reliance on existing trade partners and tap into new growth opportunities in Eurasia.
Analysts note that the agreement could also enhance Indonesia’s geopolitical ties with Russia and its allies, positioning Jakarta as a bridge between Southeast Asia and Eurasia.
However, details of the concessions made by Indonesia under the agreement have not yet been disclosed.
With the FTA now signed, businesses in both regions are expected to prepare for increased trade flows, particularly in commodities and manufactured goods.
The agreement underscores Indonesia’s ambition to play a larger role in global trade networks while strengthening its economic resilience.
Sources: Indonesia Trade Ministry, Reuters, Al Jazeera, The Moscow Times
