Jakarta (ANTARA) - The Indonesian government on Sunday (December 21) signed a free trade agreement (FTA) with the Eurasian Economic Union (EAEU), aimed at reducing trade tariffs and expanding the reach of national products to nontraditional markets.
Trade Minister Budi Santoso represented Indonesia at the signing, which took place on the sidelines of the EAEU Summit in Saint Petersburg, Russia. He said the FTA was part of President Prabowo Subianto’s directive to open new markets for Indonesian businesses.
"The Indonesia-EAEU FTA is not only about tariff reduction but also serves as a milestone toward building a mutually beneficial and sustainable economic bridge," he noted in a statement cited in Jakarta on Monday.
He expressed confidence that the FTA, inked in the presence of Russian President Vladimir Putin and other leaders of EAEU member states, will facilitate Indonesia penetrating previously untapped Eurasian markets, which encompass 180 million people and a GDP of US$2.56 trillion.
"This signing is part of our efforts to diversify Indonesia's export markets and to explore new sources of investment, particularly in the manufacturing and agriculture sectors," Santoso said.
He added that through the trade pact, which consists of 15 chapters covering areas of mutual growth—including market access, trade facilitation, and economic cooperation—the EAEU formalizes its commitment to applying preferential tariffs to 90.5 percent of tariff lines for Indonesian products.
The minister emphasized that under the arrangement, "Indonesia's flagship products will gain broader and more competitive market access."
Elaborating further, Santoso highlighted that the preferential tariff treatment is expected to boost Indonesia's exports of palm oil and its derivatives, footwear, textiles and textile products, fishery products, natural rubber, furniture, and electronics.
On the other hand, he said, Indonesia offers EAEU countries economic opportunities through its population of 281.6 million and GDP of US$1.4 trillion, which continues to grow exponentially.
He emphasized that the Indonesia–EAEU FTA represents more than political and economic gestures; it marks a new chapter in the strategic partnership between the two parties, both of which encompass vast markets, possess strong resources, and offer complementary products.
Indonesia and the EAEU have the potential to mutually strengthen their positions in the global trade ecosystem, he added.
Santoso signed the FTA alongside Armenian Deputy Prime Minister (PM) Mher Grigoryan, Belarusian Deputy PM Natalia Petkevich, Kazakh Deputy PM Serik Zhumangarin, Kyrgyz First Deputy PM Daniyar Amangeldiev, Russian Deputy PM Alexey Overchuk, and Chairman of the Board of the Eurasian Economic Commission Bakytzhan Sagintayev.
The minister also took the occasion to convey President Prabowo’s greetings to EAEU leaders.
