Kazakhstan-Indonesia trade poised for growth after EAEU-Indonesia FTA

The agreement provides for a duty-free trade regime covering more than 90 percent of the range of goods. For certain sensitive product categories, transitional periods are envisaged, during which import customs duties will be reduced gradually over a period ranging from three to 15 years.

As a result, the average import customs duty rate for EAEU exporters in the Indonesian market will decrease from 10.2 percent to 2 percent.

The ministry highlighted the introduction of a duty-free trade regime will create favorable conditions for both agricultural and industrial products from Kazakhstan to enter the Indonesian market.

In addition to establishing the preferential trade regime, the agreement regulates a wide range of trade-related aspects, including trade defense measures, rules of origin, customs cooperation, technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS), intellectual property, as well as legal and institutional provisions such as general principles, dispute settlement, transparency, and final clauses. There are also separate chapters dedicated to electronic commerce and economic cooperation between the sides, said the ministry. 

It added that the conclusion of the agreement will contribute to the development and strengthening of trade relations between the EAEU countries and Indonesia, creating conditions for an increase in trade turnover.

Trade turnover between Kazakhstan and Indonesia in 2024 amounted to 300.5 million US dollars, which is 4.9 percent higher compared to the previous year (286.4 million US dollars). Exports from Kazakhstan to Indonesia in 2024 increased by 26.8 percent to 120.8 million US dollars, while imports from Indonesia to Kazakhstan decreased by 6 percent, totaling 179.8 million US dollars.

Earlier, Qazinform News Agency reported Kazakh President Kassym-Jomart Tokayev calls for removal of barriers in EAEU mutual trade.