Indonesia, EAEU Sign Free Trade Agreement to Boost Trade

Sign Free Trade Agreement

Indonesia: Indonesia and the Russia-led Eurasian Economic Union (EAEU) have signed a free trade agreement (FTA) aimed at strengthening two-way trade, Indonesia’s trade ministry said. The agreement was signed over the weekend in St. Petersburg, Russia, and was witnessed by Russian President Vladimir Putin along with leaders of EAEU member states Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Indonesia was represented at the signing by Trade Minister Budi Santoso. The deal was concluded after two years of negotiations and is expected to enhance economic ties between Southeast Asia’s largest economy, with a population of 280 million, and the EAEU bloc of around 180 million people.

Under the agreement, the EAEU will grant Indonesia preferential tariff rates on 90.5% of its total tariff lines, providing broader and more competitive market access for Indonesian products. Trade Minister Budi Santoso said the FTA would support increased exports of palm oil and its derivatives, footwear, textiles, fisheries, rubber, furniture and electronics. The ministry quoted EAEU Board Chairman Bakytzhan Sagintayev as saying the agreement could potentially double bilateral trade. Between January and October this year, total trade between Indonesia and the EAEU amounted to USD 4.4 billion, with Indonesian exports at USD 1.76 billion and imports from the bloc at USD 2.64 billion. Indonesia’s main exports to the EAEU include palm oil, coconut oil, coffee and cocoa, while the bloc’s key exports to Indonesia are coal, potassium fertiliser, wheat and ferro-alloys.

Source: Reuters