The government is targeting the completion of two major international trade agreements − the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) and the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA) − by the end of this year.

Minister of Trade Budi Santoso announced on Tuesday, June 10, 2025 that negotiations for both agreements have made significant progress and are on track for finalization. Once implemented, these agreements are expected to open broader market access for Indonesian products in Europe and the Eurasian region.

"We aim to conclude both agreements this year. The Ministry of Trade, as the lead negotiator, will ensure that these talks are finalized so that the benefits can be felt directly by businesses and the wider public," Budi said as quoted in a statement on Tuesday, June 10, 2025.

He emphasized that the I-EU CEPA and I-EAEU FTA will provide Indonesia with a competitive edge over other countries and lay the foundation for stronger economic growth. The deals are designed to increase market access for Indonesia’s top export products in both the European Union (EU) and Eurasian Economic Union (EAEU).

In addition to diversifying export destinations, the agreements are expected to serve as alternatives for products affected by U.S. tariffs. Key sectors that will benefit include labor-intensive manufacturing, agriculture, and fisheries.

“These agreements will reduce both tariff and non-tariff barriers for Indonesian exports such as palm oil, agricultural products, textiles, and electronics, making them more competitive,” Budi said.

Combined, the EU and EAEU markets represent over 600 million consumers with substantial purchasing power. The EU includes 27 countries with a population of nearly 450 million, while the EAEU consists of five member states with a total population of 183 million.

Budi also noted the comprehensive and inclusive nature of both agreements, covering not only trade but also investment; micro, small and medium enterprises (MSMEs); and sustainability. He expressed hope that the deals would attract high-tech industrial investment into Indonesia, contributing to increased competitiveness, industrial development, value-added production, and technological advancement.

“These agreements will also support Indonesian MSME exports under the Ministry’s BISA Export initiative − an effort to empower MSMEs to innovate and adapt for global trade,” he said, adding that Indonesia’s trade representatives abroad will assist MSMEs in entering international markets.

Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, highlighted that the EU and EAEU partnerships are designed to be complementary. He pointed out that one of the key elements of the EU agreement is balancing environmental protection with trade activity.

“We hope these two agreements will enhance welfare, create new jobs, promote sustainable development, and attract investment across various sectors,” Djatmiko said.

In 2024, total trade between Indonesia and the EU reached US$30.1 billion (Rp489.8 trillion), with Indonesian exports totaling US$17.3 billion, a 4.01 percent increase from the previous year. Imports from the EU were US$12.8 billion, marking a 9.1 percent decline. Indonesia posted a surplus of US$4.5 billion in trade with the EU.

In contrast, Indonesia's trade with the EAEU reached US$4.1 billion. Indonesian exports to the region stood at US$1.5 billion, up 36 percent, while imports were US$2.4 billion, down 4 percent, resulting in a US$1.1 billion trade deficit.

“We also hope improved market access to the Eurasian Economic Union will help reduce the trade deficit and enhance Indonesia’s trade balance. All stakeholders can contribute to strengthening Indonesia’s economic ties with both the EU and EAEU through increased exports and investment,” Djatmiko concluded.