Indonesia–Uzbekistan FTA negotiations to strengthen market access to Central Asia
Jakarta — Indonesian Trade Minister Budi Santoso, together with Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov, launched negotiations for a bilateral free trade agreement between Indonesia and Uzbekistan (Indonesia–Uzbekistan FTA) via video conference.
The launch was marked by the signing of a joint statement by the two ministers online, via a videoconference application. In addition, they signed the Agreement on Trade and Investment Cooperation.
‘The launch of the Indonesia–Uzbekistan FTA negotiations today marks an important step in strengthening bilateral trade and investment,’ said Trade Minister Budi Santoso. ‘We are optimistic that this agreement will act as a catalyst for inclusive and sustainable economic growth.’
The negotiation initiative reflects the two countries’ shared vision of building a deeper, open, and sustainable economic partnership in the face of global economic dynamics. Trade Minister Busan hopes the Indonesia–Uzbekistan FTA can expand market access for flagship products of both countries, strengthen value chains, and create real opportunities for the business sector, including micro, small and medium enterprises (MSMEs).
Uzbekistan is a strategic partner in Central Asia for enhancing regional and global trade connectivity with Indonesia. Its strategic geographic location could become a gateway for Indonesian products to reach a broader market in the region.
By 2025, total Indonesia–Uzbekistan trade reached USD 181.4 million. This figure grew 48.9 percent over the past five years (2021–2025), reflecting growing confidence among the business communities of both countries. This growth also underscores the importance of building a more structured framework to realise the potential.
According to Budi, the Indonesian negotiating team will work optimally and constructively to conclude the negotiations on time while safeguarding national interests. ‘We are committed that the negotiation process will be effective, transparent, and yield an agreement that offers tangible benefits,’ Budi said.
Budi also expressed appreciation to Uzbekistan’s Minister of Investment, Industry, and Trade Laziz Kudratov for strengthening the two countries’ potential within a robust cooperative framework. Kudratov, for his part, stressed Uzbekistan’s strong interest in deepening bilateral cooperation with Indonesia.
‘We see our bilateral partnership as showing steady and positive development. Our trade and investment remain far from their potential to grow. The Indonesia–Uzbekistan FTA and the Agreement on Trade and Investment Cooperation, which we are now preparing, will form a solid foundation for a broader and more systematic partnership between the two countries,’ Kudratov said.
Joint Working Group Indonesia–Uzbekistan
In addition to launching the Indonesia–Uzbekistan FTA, the two ministers also signed the Agreement on Trade and Investment Cooperation. This agreement will establish a Joint Working Group. The Joint Working Group will be tasked with intensifying information exchange, knowledge sharing, and technical expertise; identifying and implementing mutually beneficial cooperation projects; and organising joint training programmes, meetings and seminars.
It is hoped that the Joint Working Group will provide a more directed mechanism to drive concrete cooperation, including opening investment opportunities and strengthening collaboration among business actors.
Meanwhile, Kudratov reiterated Uzbekistan’s strong commitment to deepening bilateral economic ties. He proposed that the Joint Working Group meet regularly to monitor the progress of implementing the two countries’ cooperation, and he invited Trade Minister Busan to visit Uzbekistan for the Intergovernmental Commission (IGC) meeting planned for June 2026 in Tashkent.
As a side note, in 2018, Indonesia and Uzbekistan agreed to begin discussions on an Indonesia–Uzbekistan Preferential Trade Agreement (IU-PTA). Following this, the two countries agreed to conduct a joint feasibility study (joint feasibility study/JFS). It was planned that in August 2025 the IU-PTA negotiations would be launched during the Indonesian Trade Minister’s working visit to Uzbekistan. The relationship between Indonesia and Uzbekistan has a long history, rooted in shared diplomatic involvement and economic cooperation.
Since formal diplomatic ties were established in 1992, the two countries have continued to strengthen cooperation in various sectors, including trade, investment, and cultural exchange. This partnership’s strategic importance is reflected in the governments’ consistent efforts to enhance bilateral economic relations, which will drive growth and prosperity for both countries.