December 30, 2025 | 11:25 pm
TEMPO.CO, Jakarta - Indonesia and the Eurasian Economic Union (EAEU) signed a free trade agreement in St. Petersburg, Russia, on Sunday, December 21, 2025. Indonesian Ambassador to Kazakhstan and Tajikistan M. Fadjroel Rachman stated that the agreement could double Indonesia's trade with EAEU member states, including Kazakhstan, a new target for Indonesian trade.
The EAEU summit in St. Petersburg, Russia, from December 21 to 22, 2025, was attended by the five leaders of EAEU member states: Kazakhstan, Russia, Armenia, Belarus, and Kyrgyzstan. Also present was Russian President Vladimir Putin. Representing Indonesia were Minister of Trade Budi Santoso, Ambassador M. Fadjroel Rachman, and Ambassador Jose Tavares. Also present were Kazakhstan's Deputy Prime Minister Serik Zhumangarin; Russia's Deputy Prime Minister Alexey Overchuk; Armenia's Deputy Prime Minister Mher Grigoryan; Belarus's Deputy Prime Minister Natalia Petkevich; Kyrgyzstan's Deputy Prime Minister Daniyar Armangeldiev; and the Eurasian Economic Commission's Chairman Bakytzhan Sagintayev.
The EAEU is an economic bloc that formed in May 2014 and became active in January 2015. The EAEU market encompasses a population of 180 million and a GDP of around US$2.56 trillion. Meanwhile, Indonesia has a population of 285 million (the fourth largest in the world) and a GDP of around US$1.4 trillion. Based on their respective economic strengths and populations, Indonesia and the EAEU will play a very strategic role in the global trade ecosystem. "Kazakhstan now has the highest GDP per capita of around US$15,000 and a population of 20 million, which is a key factor in the success of the Indonesia-EAEU FTA," said Ambassador Fadjroel.
According to Fadjroel, opening the Eurasian market aligns with President Prabowo's Asta Cita Program, unlocking potential for national resilience and economic development. "Over the past year, Minister of Trade Budi Santoso, Minister of Foreign Affairs Sugiono, and Coordinating Minister for the Economy Airlangga Hartarto have worked hard to finalize the Indonesia-EAEU FTA," said the Ambassador.
The agreement consists of 15 chapters, covering topics such as market access, trade facilitation, and economic cooperation. It formalizes preferential tariffs of up to 90.5 percent for Indonesian products, representing 95.1 percent of Indonesia's total imports from the EAEU. "Indonesian products will become more competitive and have broader market access," emphasized Trade Minister Budi Santoso.
The Kazakh Ministry of Trade and Integration welcomed the signing of the Indonesia-EAEU FTA, as it will increase Kazakhstan's exports of agricultural and industrial goods to Indonesia, among other things. "This agreement will contribute to increasing the value of trade between Kazakhstan and Indonesia," they said. The highest recorded value of trade between the two countries was US$691.3 million in 2022 and US$398.4 billion in 2024.
Fadjroel believes that this agreement will help Indonesia and Kazakhstan reach their trade target of US$2 billion. It will enhance progress in logistics, transportation, direct flights, visa-free travel, investment protection, and bilateral agreements, as well as an MoU on energy and minerals. Kazakhstan's president, Kassym-Jomart Tokayev, also called for the removal of barriers to trade with the EAEU.
Based on information from the Ministry of Trade, the Indonesian Embassy in Astana recorded Indonesian exports to Kazakhstan in 2025. These exports included electrical machinery and equipment, animal and vegetable fats and oils, tobacco, footwear, and mechanical machinery. Meanwhile, Kazakhstan's exports to Indonesia included iron, steel, ferroalloys, zinc, salt, sulfur, lime, aluminum, and inorganic chemicals.
The Indonesian Embassy in Astana recommends seizing market opportunities in Kazakhstan by coordinating logistics, harmonizing import duties, and improving transportation efficiency. Reducing trade costs can improve competitiveness, encourage verified exports, and boost investment.
"A new wave of trade globalization is a golden bridge between Indonesia and Eurasia. Let us celebrate the glorious days of the two richest and largest nations in Central and Southeast Asia together," said Ambassador Fadjroel.
Read: Indonesian Exports Value with Egypt Hits US$1.59bn, Highest in Africa
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