The upcoming Free Trade Agreement (FTA) between Indonesia and the Eurasian Economic Union (EAEU) is set to significantly boost bilateral trade volumes, according to Sergey Tolchenov, Russia’s Ambassador to Indonesia.
"The removal of tariff and technical barriers, including the elimination of duties on 90.5% of Indonesian goods and 90% of product categories from Russia and other EAEU member states, is expected to provide a substantial impetus for mutual trade growth," Tolchenov wrote in an article for Bisnis Indonesia.
The diplomat noted that the current global landscape is defined by a "fragmented international trading system," "economic policy uncertainty," and "tariff aggression." In this context, he argued that deepening cooperation between EAEU members and Indonesia would benefit all parties, allowing them to diversify their foreign trade ties and reduce vulnerability to global shocks.
The EAEU nations signed the Free Trade Agreement with Indonesia on December 21. Andrey Slepnev, Minister for Trade of the Eurasian Economic Commission, previously stated that the duty reductions will impact approximately $3 billion worth of trade between the bloc and Indonesia.
According to Slepnev, bilateral trade volume is projected to double within three to five years of the agreement’s entry into force. He also anticipated a marked increase in exports to Indonesia across both agricultural and industrial sectors.
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Based on materials from TASS