Antara News (21/07/2026) - Jakarta (ANTARA) - The ratification of the Indonesia-Eurasian Economic Union Free Trade Agreement (IEAEU-FTA) will open access to a US$3 trillion market while boosting major national export commodities, including palm oil, coffee, textiles, and footwear, Trade Minister Budi Santoso said.

Speaking before Commission VI of the House of Representatives (DPR RI) in Jakarta, Tuesday, Budi noted that EAEU member states—comprising Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan—have committed to eliminating or reducing tariffs on 11,882 tariff lines, representing 90.5 percent of their total tariff lines.

"Indonesia's leading various export products that will benefit include palm oil and its derivatives, natural rubber, coffee, fishery products, textiles and textile products, footwear, furniture, electrical machinery and equipment, wood and wood products,” Budi told lawmakers.

Signed in December 2025, in St. Petersburg, Russia, the trade agreement will grant Indonesian businesses access to a market of 183.7 million people with a combined gross domestic product (GDP) of US$3.04 trillion.

Budi views the agreement as a strategic gateway for Indonesian products, particularly from micro, small, and medium enterprises (MSMEs), to expand into Central Asia, West Asia and Eastern Europe.

In return, Indonesia will reduce tariffs on 10,257 domestic tariff lines, or 89.9 percent of national tariff lines—focusing primarily on industrial inputs and raw materials such as wheat, fertilizer, pharmaceuticals, basic chemicals, dairy, paper and pulp.

The Trade Ministry projects that full implementation of the IEAEU-FTA will drive the value of Indonesian exports to the Eurasian region to between US$2.87 billion and US$2.89 billion, while increasing national welfare by US$69.98 million and lifting real GDP by 0.0059 percent.

Read more at https://en.antaranews.com/amp/news/423541/indonesia-eaeu-fta-opens-us3-trillion-market-for-local-products