I hope that both parties can follow immediately by completing all phases of the required process, so that this agreement can be signed this year
Jakarta (Antara) -the Indonesian Government, represented by the coordinating Minister of the Economy of Airlangga Hartarto, together with the Minister of Trade of the Erazian Economic Union Committee Andrey Slepnev, the Indonesian -Economic Union Free Trade Agreement (I -Aeu FTA).
The agreement was announced by Indonesian President Pabowo Subianto and the Russian Federation President Vladimir Putin after a bilateral meeting in the Palace of Constantinovsky, St. Petersburg, Russia, Thursday (6/19).
“I also welcomed very happy that it was agreed between Indonesia and Russia in our role in the Eurasian Economic Union (EAEU),” said Pabowo in an official statement that was received in Jakarta on Friday.
Indonesia-Russia has reached a substantive agreement in all negotiation areas. The process of ratification and technical training will soon be carried out to speed up the adoption of the agreement.
This marks a new chapter in the economic cooperation of Indonesia and Eaeu member states, namely Armenia, Wit -Russia, Kazakhstan, Kyrgyzstan and Russia. Since it was launched in December 2022, five negotiating rounds and various intersections have been carried out.
The Indonesian negotiating team was led by the director -general of international trade negotiations at the Ministry of Trade Djatmiko Bris Witjaksono. This agreement opens new export options for Indonesia, especially for superior raw materials such as raw palm oil (CPO) and its derivatives, copra, coffee, natural rubber and cocoa butter.
On the other hand, Indonesia also expects an increase in EAEU’s import for a number of strategic raw materials, including wheat, phosphate, coal and raw materials for chemical fertilizers and semi -filled iron.
With a total population of more than 460 million people between Indonesia and EAEU, it is assumed that this agreement is expanding market access, facilitating logistics and increases the flow of two -way investments between Indonesia and Eaeu.
In his comments, the coordinating minister Airlangga expressed his appreciation to the TOP team of the completion of the II-aeu FTA negotiations.
“I hope that both parties can follow immediately by completing all phases of the required process so that this agreement can be signed this year,” Airlangga explains.
In response, the Minister of Trade SLEPNEV also expressed his gratitude for achieving today’s excellent for both parties to encourage the improvement of modern trading relationships and People-to-people contact us.
“The Eurasian Economic Commission is ready to sign this year’s agreement and is committed to do the best to complete the necessary technical requirements,” said the Trade Minister of Sleppnev.
The trade agreement with EAEU is part of the Indonesian export market diversification strategy to non-traditional areas. The Eurasian region is seen as a great potential as an export and strategic investment source, with the average GDP growth of the EAEU area of 4.4 percent, higher than the global average.
Based on a joint feasibility study (Joint feasibility study)The implementation of the agreement is expected to considerably encourage Indonesian exports in the production sectors based on resources and on the basis of resources.
In the period from January to March 2025, trade between Indonesia and EAEU registered at 1.57 billion US dollars, strongly with 84.63 percent compared to the same period in the previous year.
In addition to trade, Indonesia also opens investment options from EAEU countries in priority sectors such as production, transport, logistics, mining and agricultural industry.
The realization of investments from the EAEU region to Indonesia continues to show a positive trend with a value of 273.7 million US dollars in 2024.
Due to the implementation of this trade agreement, Indonesia can also be a gateway for logistics and distribution access to Southeast -Asia, while Eaeu can be an access path of the leading raw material of Indonesia in the Eastern and Central European European markets.
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Pewarta: Bayu Saputra
Editor: Faisal Yunianto
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