St. Petersburg, Russian - The Indonesian government, represented by Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of Trade of the Eurasian Economic Union Commission Andrey Slepnev, officially announced the substantive completion of the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA) negotiations, on the sidelines of the 28th St. Petersburg International Economic Forum (SPIEF 2025).

The agreement was announced by President of the Republic of Indonesia Prabowo Subianto and President of the Russian Federation Vladimir Putin after a bilateral meeting held at Konstantinovsky Palace, St. Petersburg, Russian Federation, on 19 June 2025.

‘I also welcome the agreement between Indonesia and Russia on our role in the Eurasian Economic Union (EAEU),’ President Prabowo said.

This marks a new chapter in the economic cooperation between Indonesia and the EAEU member states of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Since its launch in December 2022, there have been 5 (five) rounds of negotiations and various intersessional meetings.

The Indonesian negotiating team was led by the Director General of International Trade Negotiations of the Ministry of Trade. Both parties have reached substantive agreements on all areas of negotiation. The ratification process and technical finalisation will be carried out soon to accelerate the entry into force of the agreement.

This agreement opens new export opportunities for Indonesia, especially for superior commodities such as crude palm oil (CPO) and its derivatives, copra, coffee, natural rubber, and cocoa butter. On the other hand, Indonesia also expects increased imports from the EAEU for a number of strategic commodities, including
wheat, phosphate, coal, and raw materials for chemical fertilisers and semi-finished iron.

With a total population of more than 460 million between Indonesia and the EAEU, this agreement is believed to expand market access, streamline logistics, and increase two-way investment flows between Indonesia and the EAEU.

In his remarks, Airlangga expressed his appreciation to the negotiating team for the substantive completion of the I-EAEU FTA Negotiations.

‘I hope both parties can immediately follow up by completing all the necessary stages of the process so that this agreement can be signed this year,’ Airlangga explained.

In response, Minister of Trade Slepnev also expressed his gratitude for today's achievement which is very good for both parties to encourage the improvement of modern trade relations and people-to-people contact.

‘The Eurasian Economic Commission is ready to sign the agreement this year and is committed to doing its utmost to finalise the necessary technical requirements,’ said Trade Minister Slepnev.

The trade agreement with the EAEU is part of Indonesia's strategy to diversify its export markets to non-traditional regions. The Eurasian region is seen as having great potential as an export destination and source of strategic investment, with the average GDP growth of the EAEU region reaching 4.4%, higher than the global average.

Based on the Joint Feasibility Study, the implementation of the agreement is expected to significantly boost Indonesia's exports in the agriculture and resource-based manufacturing sectors.

In the period January to March 2025, trade between Indonesia and the EAEU was recorded at USD 1.57 billion, a sharp increase of 84.63% over the same period in the previous year.

Beyond trade, Indonesia also opens investment opportunities from EAEU countries in priority sectors such as processing industry, transportation, logistics, mining, and agriculture. Investment realisation from the EAEU region to Indonesia continues to show a positive trend with a value of USD 273.7 million by 2024.

Through the implementation of this trade agreement, Indonesia can also become a gateway for logistics and distribution to logistics access and distribution to Southeast Asia, while the EAEU can become an entry point for Indonesia's superior commodities to the Eastern European and Central Asian markets.

Also accompanying Airlangga at the meeting were Secretary of the Coordinating Ministry for Economic Affairs Susiwijono and Ambassador of the Russian Federation in Jakarta Sergei Tolchenov. (is/aay/dep2)

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Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso

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