Indonesia signs free trade deal with Russian-led Eurasian Economic Union
The union will grant South-east Asia’s biggest economy preferential rates for 90.5% of its total tariff lines
[JAKARTA] Indonesia and the Russia-led Eurasian Economic Union (EAEU) have signed a free trade agreement (FTA) aimed at increasing two-way trade, Indonesia’s trade ministry said on Monday (Dec 22).
The signing of the FTA took place in St Petersburg, Russia, over the weekend, witnessed by Russian President Vladimir Putin and leaders of other countries within the EAEU, which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
Indonesia was represented by Trade Minister Budi Santoso.
Under the agreement, reached after two years of negotiations, the union will grant Indonesia preferential rates for 90.5 per cent of its total tariff lines, which gives South-east Asia’s biggest economy access to the bloc’s 180 million people, the Indonesian ministry said.
The ministry did not provide details about the trade concessions made by Jakarta as part of the agreement. Indonesia has a population of 280 million people.
“Indonesia’s leading products will gain broader and more competitive market access,” minister Budi said in a statement.
“This will drive increased exports of palm oil and its derivatives, footwear, textiles, fisheries, rubber, furniture and electronics,” he added.
The statement quoted Bakytzhan Sagintayev, chairman of the board of the EAEU, saying that the FTA could double two-way trade between the bloc and Indonesia.
Between January and October this year, total trade between Indonesia and the union stood at US$4.4 billion, with Indonesian exports at US$1.8 billion and imports from the bloc amounting to US$2.6 billion, said the trade ministry.
Indonesia’s top export products to the EAEU are palm oil, coconut oil, coffee and cocoa, while the union’s main exports are coal, potassium fertiliser, wheat and ferro-alloys. REUTERS
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