Indonesia-EAEU Free Trade Agreement to Open New Export Gateway, 11,892 Products to Enjoy Tariff Cuts
The government believes the Indonesia-Eurasian Economic Union Free Trade Agreement (FTA) will serve as a new gateway for national products to penetrate non-traditional export markets. The agreement has now received the green light from the House of Representatives’ Commission VI to proceed to the ratification stage.
Minister of Trade Budi Santoso stated that the Eurasian region offers significant market potential through its five member states: Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. The agreement is also considered capable of strengthening Indonesia’s position in the global supply chain.
‘This trade agreement is important because it will open wider access for Indonesian export markets, increase the competitiveness of national businesses, especially SMEs, and open opportunities to enter the global supply chain by using the EAEU as a hub for Indonesian export products to Central Asia, West Asia, and Eastern Europe,’ Budi said at the Parliament Complex on Tuesday (21/7/2026).
The government noted that the majority of Indonesian export products will receive tariff elimination or reduction facilities. Commodities expected to enjoy the greatest benefits include palm oil products, rubber, coffee, fishery products, textiles, footwear, furniture, and electronic products.
‘In terms of market access, Indonesia has secured the elimination and reduction of tariffs for 11,882 tariff lines, or 90.5% of the total EAEU tariff posts,’ he stated.
Beyond opening export opportunities, the government also anticipates the agreement will have a broader economic impact. The increase in exports is projected to gradually boost national welfare and economic growth.
‘In terms of economic benefits, the Indonesia-EAEU FTA is projected to increase Indonesia’s exports to the EAEU in the range of 2.87 to 2.89 billion US dollars, increase Indonesia’s welfare by 69.98 million US dollars, and increase real GDP by 0.0059%,’ Budi explained.
The approval from Commission VI of the House of Representatives is a crucial step for the agreement to enter the implementation phase. The government believes that the sooner the agreement is enforced, the greater the opportunity for national exporters to utilise the preferential tariff facilities agreed upon with the EAEU member countries.
‘On behalf of the government, we express our gratitude for the results of today’s working meeting, and hopefully, all trade agreements currently in the ratification process can be completed soon and implemented immediately,’ Budi concluded.