Indonesia Races to Finalize I-EAEU FTA Amid Trump’s Tariff Talks
As global trade dynamics shift once again, Indonesia is moving swiftly to finalize its long-anticipated Free Trade Agreement (FTA) with the Eurasian Economic Union (I-EAEU FTA). This urgency comes in the wake of renewed U.S. protectionist policies, particularly former President Donald Trump’s proposed return to high import tariffs, which could create ripple effects across global markets.
The Indonesia finalize I-EAEU FTA initiative is now seen as a strategic buffer against potential economic shocks triggered by rising trade tensions. By accelerating the completion of this deal, Indonesia aims to expand its export market reach while ensuring long-term trade resilience amid increasing global uncertainty.
Strategic Push for Market Diversification
Indonesia’s trade ministry confirmed that negotiations with the EAEU bloc—which includes Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan—are entering their critical final phases. This agreement, when concluded, is expected to boost bilateral trade volumes, reduce tariff barriers, and provide Indonesian exporters with greater access to non-traditional markets.
Officials highlighted that the Indonesia finalize I-EAEU FTA push is not only timely but essential, especially considering the unpredictability of U.S. trade policy if Trump returns to office. His proposed tariff hikes, particularly the 10% universal import tax, could disrupt supply chains and pressure emerging economies like Indonesia to pivot quickly.
Indonesia’s Export Goals at Stake
Indonesia has set ambitious goals to increase non-oil and gas exports, and the I-EAEU FTA could play a crucial role in meeting those targets. Sectors likely to benefit from the agreement include palm oil, textiles, footwear, and automotive components.
Analysts suggest that concluding the deal before major global disruptions—like U.S. elections and shifting G7 policies—will give Indonesia a strategic trade advantage. Moreover, the EAEU countries are actively seeking new partners due to geopolitical shifts, making the timing of this agreement even more favorable.
Balancing Risks from Trump’s Tariff Agenda
While Trump’s tariff rhetoric primarily targets China, the potential spillover could strain multilateral trade systems and lead to a domino effect of retaliatory measures. Indonesia’s proactive stance in finalizing the I-EAEU FTA could cushion such impacts by offering a stable and alternative trade route.
Trade experts also noted that engaging with the EAEU reflects Indonesia’s broader strategy to build alliances beyond traditional Western partners, aligning with its “Global Maritime Fulcrum” vision of economic independence and global integration.
Looking Ahead
With the next negotiation round scheduled later this quarter, Indonesian policymakers are under pressure to strike a deal that is both comprehensive and protective of national interests. The Indonesia finalize I-EAEU FTA momentum suggests that Jakarta is keen to shield its economy from potential global trade shocks while opening new doors in Eurasian markets.
If successful, this agreement could become a landmark step in Indonesia’s trade diplomacy, demonstrating its agility in navigating an increasingly fragmented global economy.