Second Round of Indonesia-EAEU FTA Negotiations Held in Moscow

The second round of negotiations on a free trade agreement (FTA) between Indonesia and the Eurasian Economic Union (EAEU) was held in Moscow on July 24-26.

IDXChannel - The second round of negotiations on a free trade agreement (FTA) between Indonesia and the Eurasian Economic Union (EAEU) was held in Moscow on July 24-26. The negotiations are expected to be concluded in 2024.

"This second round of negotiations has achieved progressive and positive developments that can support achieving the target of completing negotiations in 2024," said Johni Martha, the Indonesian chief negotiator who is also the Director of Bilateral Negotiations at the Indonesian Ministry of Trade, in a media release on Monday (31/7/2023).

According to the Indonesian official, the FTA is needed to increase Indonesia's exports to non-traditional markets and open market access through trade agreements. 

Previously, the first round of negotiations was held in Jakarta on 3-5 April 2023. It focused on exchanging views on national policies and exploring the position of each side.

Indonesia will host the third round of negotiations at the end of November 2023. The EAEU is an economic bloc consisting of five countries, namely Russia, Kyrgyzstan, Kazakhstan, Armenia and Belarus. 

Based on official data, in 2022, trade between Indonesia and EAEU reached USD4.35 billion, growing 30.66% (yoy). Indonesia's exports were recorded at USD1.5 billion, while imports stood at USD2.85 billion. 

Indonesia's main export commodities to EAEU in 2022 were palm oil, copra, natural rubber, coffee, television sets, and machine parts. Meanwhile, Indonesia's main import commodities from EAEU were fertilizers, steel products, and coal. (WHY)