Jakarta. The freshly signed Eurasian trade pact is set to lower the region’s tariffs on Indonesian palm oil “close to zero”, according to a minister.

Indonesia recently signed a free trade agreement with the Eurasian Economic Union (EAEU). This bloc brings together Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. The Jakarta Globe asked Trade Minister Budi Santoso about how big the tariff cut on Indonesian palm oil would be under this deal, given that the agrifood commodity is a major export to the group’s richest economy, Russia.

“The EAEU pact will bring down the tariffs on nearly all products to close to 0%. This also applies to our palm oil,” Budi told a press briefing in Jakarta on Friday.

Budi did not disclose the exact import duty rate on Indonesian palm oil. The minister went on to say that the deal would present ample opportunities for Indonesian apparel and footwear. Jakarta is hoping that the agreement can double its trade with the EAEU, which totaled approximately $4.5 billion in 2024.

“This could also be our gateway to the neighboring countries,” Budi said, naming Ukraine and Uzbekistan as examples.

Budi was in St. Petersburg to ink the EAEU trade accord last week.

Jakarta’s side had previously stated that they wanted to see the accord enter into force in Q4 2026 or by 2027. The document still has to gain lawmakers' approval before that can happen.

The EAEU has committed to granting preferential rates for 90.5% of the tariff lines. This is equivalent to 95.1% of the group’s Indonesian imports. Indonesia is willing to give preferential rates for 90% of the tariff lines for goods coming from the 5-strong bloc. The Russian government reported that Jakarta’s average tariff rates on EAEU goods would drop from 10.2% to 2%.