Jakarta. A newly signed free trade agreement with the Eurasian Economic Union (EAEU) is raising hopes among Indonesian exporters that they can reduce their dependence on the US market amid growing protectionism under President Donald Trump.

The Eurasian Economic Union — which includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan — represents a combined gross domestic product of about $2.56 trillion. Under the Indonesia–EAEU free trade agreement, the bloc will grant Indonesia preferential treatment on 90.5% of its tariff lines.

Trade Minister Budi Santoso has said the agreement would reduce import duties to levels “close to zero,” although he has not disclosed the precise rates.

For exporters, the agreement — which is expected to enter into force by 2027 — could position Eurasia as a viable alternative market to the United States. The Indonesian Employers Association (Apindo) said Indonesia exports broadly similar products to both markets, including footwear, palm oil, and apparel.

These sectors have been affected by Trump’s reciprocal tariffs of 19%, although palm oil is expected to receive an exemption.

“Unlocking the EAEU market can help us diversify apparel and footwear exports,” Apindo chairwoman Shinta Kamdani said. “These capital-intensive products have long relied heavily on the US market. That overdependence has made the sector vulnerable to tariff policy shifts and global trade dynamics.”

Shinta cautioned, however, that Indonesia must improve logistics efficiency to fully benefit from the agreement. She added that stronger trade facilitation and export financing would also be needed for businesses seeking to tap into the EAEU’s market of roughly 180 million people.

Aprisindo chairman Eddy Widjanarko said the footwear industry, in particular, sees the deal as an opportunity to expand beyond traditional markets.

“The more we implement this FTA, the bigger the export opportunity,” Eddy said.

Government data show that total Indonesia–EAEU trade reached $4.52 billion in 2024, with the balance favoring the Eurasian bloc. Indonesia’s exports amounted to $1.89 billion. Jakarta has said it hopes the agreement will eventually double bilateral trade.

Russia, the EAEU’s largest economy, is also Indonesia’s biggest trading partner within the bloc. Most Indonesian palm oil and footwear exports to the EAEU are destined for Russia.

Exports of animal fats and vegetable oils to Russia reached $813 million between January and October 2025, less than half the nearly $1.8 billion shipped to the United States over the same period. Footwear exports to Russia stood at $21.7 million, compared with $2.3 billion in shipments to the US, according to Trade Ministry data.

Under the agreement, Indonesia will also grant preferential treatment to the EAEU on 90% of its tariff lines. Jakarta’s average tariff rate on EAEU imports will fall from 10.2% to 2%.

Russian President Vladimir Putin welcomed the deal, saying it would open up strong prospects for cooperation and describing Indonesia as “one of the largest and most dynamic economies in both Asia and globally.”