On December 21, 2025, the Eurasian Economic Union (EAEU) and Indonesia formalized a comprehensive free trade agreement (FTA) during the Supreme Eurasian Economic Council meeting in St. Petersburg, Russia. The signing, witnessed by Russian President Vladimir Putin and leaders from EAEU member states, marks a significant expansion of the bloc's international trade partnerships and opens new markets for both sides.
The agreement was one of 20 documents adopted at the summit, as detailed in statements from the Kremlin and the Eurasian Economic Commission (EEC). Indonesian Trade Minister Budi Santoso represented Jakarta at the ceremony, signing alongside representatives from the EAEU's five members: Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. The FTA follows two years of negotiations that concluded earlier in 2025, with substantive talks wrapping up by mid-year.
Under the deal, the EAEU commits to preferential tariff rates covering 90.5% of tariff lines, representing approximately 95.1% of its import value from Indonesia. This provides Indonesian exporters enhanced access to the bloc's combined market of over 180 million consumers. In return, the agreement is expected to facilitate greater inflows of EAEU goods into Indonesia's 280 million-strong market.
Key Indonesian exports poised to benefit include palm oil and derivatives, coconut oil, coffee, cocoa, footwear, textiles, fisheries products, rubber, furniture, and electronics. From the EAEU side, major exports such as coal, potassium fertilizers, wheat, and ferro-alloys stand to gain competitiveness. EEC Chairman Bakytzhan Sagintayev stated that the FTA could double bilateral trade, building on recent growth: from January to October 2025, two-way trade reached $4.4 billion, with Indonesian exports at $1.76 billion and imports at $2.64 billion.
The summit began with a narrow-format session attended by Russian President Vladimir Putin, Belarusian President Alexander Lukashenko, Kazakh President Kassym-Jomart Tokayev, Kyrgyz President Sadyr Japarov, Armenian Prime Minister Nikol Pashinyan, and Sagintayev. An expanded session included Uzbekistan's president (as an observer state leader), along with ambassadors from Cuba and Iran—both EAEU observer states. Indonesian Minister Santoso participated in relevant discussions.
The Supreme Eurasian Economic Council is the EAEU's highest supranational body, overseeing strategic decisions for the union established by a treaty signed in May 2014 and effective from January 2015. Full members are Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, while observer states include Cuba, Iran, Moldova, and Uzbekistan. Notably, Moldova has shifted focus toward EU integration since 2022, receiving candidate status and opening accession talks.
This FTA is the third such agreement concluded by the EAEU in 2025, following deals with the United Arab Emirates and a temporary arrangement with Mongolia. It aligns with the bloc's strategy to deepen ties with Global South partners amid geopolitical shifts, diversifying trade routes and reducing reliance on Western markets.
For Indonesia, Southeast Asia's largest economy, the pact supports President Prabowo Subianto's agenda to boost non-traditional exports and economic resilience. Negotiations began in December 2022, with multiple rounds culminating in a joint announcement by Prabowo and Putin in June 2025 during the St. Petersburg International Economic Forum.
The agreement comprises 15 chapters covering goods market access, trade facilitation, and related provisions. Tariffs on many items will be eliminated immediately upon entry into force, with others phased out over 3-15 years. Ratification processes will follow in respective legislatures.
Analysts view the deal as a counter to Western sanctions on Russia, enhancing Eurasian connectivity while providing Indonesia diversified supply chains for commodities like fertilizers and energy resources. It also underscores the EAEU's growing role as a self-sufficient pole in a multipolar world, as highlighted by Putin during the summit.
The signing reinforces St. Petersburg's status as a hub for Eurasian diplomacy, with the summit preceding an informal Commonwealth of Independent States gathering. As global trade fragments, this FTA exemplifies efforts to forge alternative economic blocs, potentially influencing broader Asia-Eurasia integration.
