Indonesia and Eurasia Are Building a Broader Economic Partnership

The Indonesia–Eurasian Economic Union Free Trade Agreement is increasingly becoming part of a much broader economic relationship between Indonesia and Russia.

During a meeting with President Prabowo Subianto on the sidelines of the 11th Eastern Economic Forum in Vladivostok on September 3, 2026, Russian President Vladimir Putin described Indonesia as one of Russia's key partners in the Asia-Pacific and a trusted friend within ASEAN.

Putin said both countries are actively working to strengthen cooperation and noted that bilateral trade volume had grown by approximately 12% in the previous year. He also specifically highlighted the recently signed FTA between Indonesia and the Eurasian Economic Union.

More importantly for businesses, the discussions were not limited to reducing tariffs.

Russia has identified several areas where cooperation with Indonesia could expand:

• Agriculture
• Shipbuilding
• Digital technology
• Energy
• Nuclear power

Previous discussions between Presidents Prabowo and Putin had also covered the economy, aerospace, industry, agriculture, energy, and pharmaceuticals.

For foreign businesses operating in Indonesia, the development should therefore be viewed as more than another trade agreement.

It could become a new framework for trade, investment, technology cooperation, industrial partnerships, and supply-chain development between Southeast Asia and Eurasia.

Indonesia–EAEU FTA: Where Does It Stand Now?

The Indonesia–EAEU FTA was signed in December 2025 between Indonesia and the Eurasian Economic Union, whose members include:

• Russia
• Belarus
• Kazakhstan
• Armenia
• Kyrgyzstan

Indonesia has since moved ahead with its domestic ratification process.

Speaking at the Eastern Economic Forum, President Prabowo confirmed that Indonesia had completed parliamentary approval and that he signed the Presidential Regulation ratifying the FTA in July 2026.

The Indonesian government is now encouraging EAEU member states to complete their respective internal procedures so the agreement can be brought into force as soon as the required notifications are exchanged.

According to President Prabowo, implementation of the agreement is scheduled to begin in 2027.

This is why the preparation period for businesses has effectively already started.

More Than 90% of Tariff Lines Could Be Reduced or Eliminated

One of the most significant elements of the agreement is its tariff coverage.

Indonesia and the EAEU have committed to eliminating or reducing duties on approximately:

11,882 tariff lines

representing more than 90% of goods traded between the two sides.

This could substantially change the economics of certain import and export transactions.

But tariff reduction alone does not automatically create a commercial advantage.

Businesses will still need to determine:

• whether their goods are covered by tariff concessions;
• the applicable HS classification;
• whether products comply with FTA origin requirements;
• what certificates and supporting documents are required;
• whether existing supply chains remain commercially efficient; and
• whether destination-market regulatory requirements have been met.

Companies that conduct these assessments before implementation will be better positioned to use the agreement once preferential tariffs become available.

Indonesia–Russia Trade Is Already Expanding

The FTA is being introduced into a relationship where trade is already growing.

President Prabowo stated that trade between Indonesia and Russia reached approximately US$5 billion in 2025, representing a 21.7% increase compared with 2024.

He has proposed an even more ambitious objective:

doubling Indonesia–Russia trade during the initial review period of the Indonesia–EAEU FTA.

The two economies also have relatively complementary trade profiles.

Indonesia has strengths in products including:

Indonesia	Russia
Palm oil	Wheat
Coffee	Fertilizers
Fishery products	Energy
Rubber	Science
Textiles	Engineering technology
Consumer goods	Industrial technology

This complementarity could encourage not only additional commodity trade but also partnerships involving manufacturing, processing, logistics, technology, and industrial development.

Four Areas Foreign Businesses Should Watch

Putin's September 2026 statement is especially relevant because it identifies areas where Russia wants economic cooperation with Indonesia to expand beyond conventional trade.

1. Agriculture and Fertilizer Supply Chains

Agriculture is likely to become one of the most visible areas of cooperation.

Indonesia has major agricultural and commodity exports, while Russia is a significant supplier of products such as wheat and fertilizers.

Recent discussions have already moved beyond general statements.

Indonesia's Minister of Investment and Downstreaming Rosan Roeslani said that Pupuk Indonesia has signed a joint study to assess the possibility of developing a urea fertilizer plant in Vladivostok.

For businesses, this points toward opportunities across:

• agricultural commodities;
• fertilizers and agricultural inputs;
• food processing;
• commodity logistics;
• warehousing;
• distribution; and
• supporting industrial services.

It also demonstrates how Indonesia–Russia cooperation may increasingly involve cross-border investment, rather than simply buying and selling goods.

2. Shipbuilding and Maritime Cooperation

Shipbuilding was specifically identified by Putin as another area where Russia wants stronger cooperation with Indonesia.

Separate discussions during the Vladivostok meeting also covered shipping technology. Russia offered a modern vessel exceeding 102 metres in length that could potentially support direct processing of fishery products, with Indonesia planning to send a team to study the technology and its possible applications.

This creates potential opportunities not only for shipbuilders.

The ecosystem may include:

• marine engineering;
• vessel maintenance;
• maritime equipment;
• fisheries processing;
• port services;
• cold-chain infrastructure;
• logistics technology; and
• marine supply-chain services.

For maritime and industrial hubs in Indonesia, greater Russia–Indonesia cooperation could therefore generate opportunities further down the supply chain.

3. Digital Technology and Advanced Industries

Digital technology was another sector highlighted directly by President Putin.

This is significant because bilateral discussions have also expanded into areas such as aerospace and advanced technology.

One concrete example is cooperation involving Indonesia's National Research and Innovation Agency (BRIN) and Russia's Roscosmos.

ANTARA reported that BRIN invited the Russian state space corporation to discuss the potential development of a spaceport in Biak, Papua.

Although such projects remain subject to further technical, regulatory, commercial, and government evaluation, they illustrate how the relationship is broadening into technology-intensive sectors.

Foreign businesses should therefore watch opportunities involving:

• digital infrastructure;
• industrial technology;
• data and communications;
• aerospace;
• research and development;
• engineering services; and
• technology partnerships.

These sectors often involve significantly more regulatory complexity than ordinary trade, making local corporate structure, licensing, technology arrangements, and sector-specific approvals particularly important.

4. Energy — Including Nuclear Cooperation

Energy may become one of the most strategically important areas of the relationship.

Putin specifically identified energy cooperation and nuclear power as areas Moscow wants to develop further with Indonesia.

The energy relationship could potentially involve a much wider ecosystem of:

• power generation;
• engineering;
• energy infrastructure;
• equipment supply;
• technical consulting;
• mineral resources;
• technology transfer; and
• supporting services.

However, energy—especially nuclear-related projects—is also highly regulated.

Companies considering participation in the sector would need to assess Indonesian investment restrictions, sector licences, technical standards, project approvals, environmental requirements, corporate structures, and other regulatory obligations before entering the market.

Therefore, the commercial opportunity should be evaluated alongside regulatory feasibility from the beginning.

Logistics Could Determine Whether the FTA Delivers Real Value

Reduced tariffs will have limited impact if moving goods between Indonesia and Eurasia remains slow, expensive, or unpredictable.

That issue was directly addressed at the Eastern Economic Forum.

President Prabowo called for the establishment of competitive direct shipping connections between Vladivostok and Indonesia.

He said effective maritime links would require:

• predictable schedules;
• transparent costs;
• reliable insurance;
• consistent cargo flows in both directions; and
• reliable trade and payment arrangements.

Indonesian companies attending the forum were reportedly already working on:

pilot shipments, buyer sourcing, logistics arrangements, compliance, and payment mechanisms in preparation for the FTA.

This provides an important lesson for foreign companies.

Do not wait until the tariff reduction becomes effective to start preparing the supply chain.

Shipping routes, commercial contracts, buyers, regulatory requirements, customs procedures, banking arrangements, and compliance systems should ideally already be tested before preferential tariffs take effect.

Indonesia Could Become a Gateway Between Eurasia and ASEAN

For Eurasian companies, the opportunity is not limited to Indonesia's domestic market.

President Prabowo positioned Indonesia as a potential gateway to ASEAN, noting both Indonesia's large domestic market and its role in the Regional Comprehensive Economic Partnership (RCEP).

This could create a broader strategic proposition.

An EAEU company may look at Indonesia not only as:

a market to sell into

but potentially as:

a base for investment, manufacturing, distribution, or regional expansion into Southeast Asia.

Similarly, companies manufacturing in Indonesia may gain another potential route into Eurasian markets.

That makes the FTA relevant to corporate location strategy as well as international trade.

What Should Foreign Businesses Prepare Now?

With implementation expected from 2027, companies that expect to use the Indonesia–EAEU corridor should consider several preparations early.

1. Review Product and HS Code Exposure

Identify which products are imported or exported and determine whether they fall within tariff lines receiving preferential treatment.

Companies should calculate whether the expected duty reduction is commercially significant enough to change sourcing or market strategy.

2. Review Market-Entry and Business Licensing

Companies establishing or expanding operations in Indonesia should verify:

• business classification or KBLI;
• foreign ownership eligibility;
• OSS licensing requirements;
• import or export activities;
• sector-specific permits; and
• operational compliance.

The FTA may improve market access, but businesses must still comply with Indonesia's domestic regulatory framework.

3. Map the Supply Chain

Businesses should understand where:

• raw materials originate;
• goods are manufactured;
• products are stored;
• customs clearance occurs;
• invoices are issued; and
• goods are ultimately delivered.

This information can become important when determining eligibility for preferential trade treatment.

4. Prepare Customs and Trade Documentation

Businesses should review their existing systems for:

• HS classification;
• commercial invoices;
• certificates;
• shipping documents;
• import-export documentation; and
• records supporting preferential tariff claims.

5. Review Logistics Early

Prabowo's emphasis on direct shipping demonstrates that logistics remains one of the key commercial challenges.

Companies should compare:

• shipping routes;
• transit times;
• insurance;
• freight costs;
• port connectivity;
• payment arrangements; and
• alternative routes.

6. Evaluate Regulatory Requirements by Sector

Businesses entering agriculture, food, energy, digital technology, shipbuilding, pharmaceuticals, or other regulated industries should not assume an FTA eliminates domestic approvals.

Product registration, technical standards, import requirements, sector licences, environmental approvals, or other regulatory requirements may still apply.

7. Assess Potential Indonesian Partners

Many of the opportunities being discussed—especially in shipbuilding, energy, agriculture, infrastructure, and advanced technology—may require local commercial relationships.

Foreign businesses should begin identifying potential:

• distributors;
• suppliers;
• joint-venture partners;
• manufacturers;
• logistics providers;
• contractors; and
• professional advisers.

8. Review International Trade Compliance

Companies conducting Eurasia-related transactions should separately assess applicable sanctions, export-control regimes, financial restrictions, banking policies, insurance requirements, and internal compliance obligations.

The availability of an FTA tariff preference does not override other applicable international or domestic compliance requirements.

The Opportunity Goes Beyond Lower Tariffs

The Indonesia–EAEU FTA is often viewed primarily as a tariff agreement.

Recent statements from the Indonesian and Russian governments suggest that the commercial implications could be considerably wider.

Agriculture, shipbuilding, digital technology, aerospace, energy, pharmaceuticals, logistics, and industrial cooperation are increasingly appearing in bilateral discussions.

The planned FTA could provide the trade infrastructure supporting that broader relationship.

This means companies should ask more than:

“How much tariff could we save?”

They should also consider:

“Could this agreement change where we manufacture, source, invest, distribute, or establish our regional operations?”

For some businesses, that may ultimately be the more important question.

2027 Is Not the Time to Start Preparing

Indonesia has completed its domestic ratification process and is encouraging the EAEU member states to complete theirs. The agreement is expected to begin implementation in 2027.

Meanwhile, commercial preparations have already started.

Pilot shipments are being prepared, buyers are being identified, logistics arrangements are being studied, and both governments are discussing cooperation far beyond traditional commodity trade.

For foreign businesses interested in Indonesia and Eurasia, the period before implementation provides an opportunity to prepare the corporate, regulatory, operational, and supply-chain foundations required to participate.

The businesses that prepare before implementation may be in a stronger position to capture the opportunities once the new trade corridor becomes operational.

How Accura Can Help Foreign Businesses Prepare

The Indonesia–EAEU FTA may open new commercial opportunities, but entering or expanding in Indonesia still requires companies to navigate local regulations correctly.

Accura can support foreign companies planning to establish, expand, or restructure their operations in Indonesia, including assistance with:

• foreign company establishment;
• PT PMA setup;
• business licensing and OSS;
• KBLI and business activity assessment;
• regulatory and corporate compliance;
• import-export business preparation;
• company amendments;
• employment and expatriate requirements; and
• market-entry support.

Whether your company is exploring Indonesia as a new market, manufacturing base, distribution hub, or gateway into ASEAN, preparing the correct legal and operational structure early can reduce delays when commercial opportunities emerge.

Planning to enter or expand your business in Indonesia?

Speak with Accura Indonesia to assess the regulatory and corporate requirements for your investment strategy.

Accura — Helping Foreign Businesses Navigate Indonesia With Confidence.