Coordinating Minister Airlangga: Free Market Of Indonesia-Erasian Economy Signed December

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. Antara)

Coordinating Minister for the Economy Airlangga Hartarto conveyed that the documents for the free market agreement (FTA) between Indonesia and the Eurasian Economic Union (EAEU) will be signed by two countries during the EAEU Summit in December 2025.

Indonesia and the Eurasian Economic Union, Airlangga continued, have completed negotiations on the free market agreement, as announced by President Prabowo Subianto and Russian President Vladimir Putin.

"The agreement (FTA) with the Eurasian Economics has been completed, the conclusion, the material has been completed (the negotiations have been agreed upon by both parties.)," said Coordinating Minister Airlangga in response to reporters' questions when met at the hotel lobby where President Prabowo was staying in St. Petersburg, Russia, quoted by Antara, Saturday, June 21.

Airlangga again emphasized that all materials that had been negotiated had been agreed upon, so that the next stage was the signing of the free market agreement document, which would later open up market barriers between Indonesia and the Eurasian Economic Union.

"Yesterday it was reported, President Putin and President Mr. Prabowo had conveyed the EAEU," said Airlangga.

President Prabowo Subianto and Russian President Vladimir Putin in a joint press statement session at the Konstantinovskiy Palace, St. Petersburg, Thursday (19/6), announced the completion of negotiations on a free market agreement between Indonesia and the Eurasian Economic Union. President Prabowo visited St. Petersburg, Russia, from June 18 to June 20 for an official visit and fulfilled President Putin's invitation to attend as the main speaker at the Saint Petersburg International Economic Forum (SPIEF) 2025, Friday.

Indonesia and the Eurasian Economic Union have started negotiations on a free market agreement since December 2022. In the span of time until June 2025, there were five rounds of negotiations, and a number of meetings. The Eurasian Economic Union consists of Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.

The negotiating team from Indonesia is led by the Director General of International Trade Negotiations of the Ministry of Trade, Djatmiko Bris Witjaksono.

The free market agreement with the Eurasian Economic Union opens new export opportunities for Indonesia, especially for leading commodities such as crude palm oil (CPO) and its derivatives, kopra, coffee, natural rubber, and cocoa butter.

On the other hand, Indonesia also expects an increase in imports from the EAEU for a number of strategic commodities, including wheat, phosphate, coal, and raw materials for chemical fertilizer and semi-finished iron.

With a total population of more than 460 million people between Indonesia and the EAEU, the free market agreement is believed to be able to expand market access, facilitate logistics, and increase the flow of two-way investment between Indonesia and the EAEU.

The trade value between Indonesia and the EAEU in the period January to March 2025 reached 1.57 billion US dollars, a sharp increase of 84.63 percent compared to the same period in the previous year.

Outside of trade, Indonesia also opens investment opportunities from EAEU countries in priority sectors such as the manufacturing, transportation, logistics, mining, and agriculture industries.

Investment realization from the EAEU region to Indonesia also shows a positive trend, reaching 273.7 million US dollars in 2024.