Indonesia Nears Trade Deals With EU, Eurasian Bloc
JAKARTA, June 11 (Bernama) -- Indonesia is close to finalising trade deals with the European Union (EU) and the Eurasian Economic Union (EAEU) by year-end to expand market access and attract foreign investment, officials said.
The two agreements are the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) and the Indonesia-EAEU Free Trade Agreement (FTA).
Trade Minister Budi Santoso said the agreements are crucial amid global trade uncertainty, with the potential to diversify Indonesia's export markets and provide alternatives for products impacted by the United States tariff policies.
'Negotiations are progressing rapidly, and we are targeting completion this year. We will ensure the benefits can be felt by businesses and the public at large,' he said in a statement.
The deals aim to lower tariff and non-tariff barriers on key Indonesian exports such as palm oil, agricultural products, textiles, and electronics, while also covering investment, sustainability, and support for small and medium-sized enterprises (SMEs).
Talks with the EU began in 2016, while negotiations with the EAEU, comprising Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan, were launched in 2022.
According to the Ministry of Trade, Indonesia's total trade with the EU reached US$30.1 billion in 2024, with a US$4.5 billion surplus, and trade with the EAEU stood at US$4.1 billion, with a US$1.1 billion deficit.
The ministry said the agreements are expected to diversify export markets and reinforce Indonesia's position as a key economic player in Southeast Asia.
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