Indonesia Commits To Trade Goals With Kazakhstan As Part Of EAEU FTA Negotiations
Kazakhstan and Indonesia have set an ambitious goal of bringing their mutual trade turnover to US$1 billion. According to Kazakhstan’s Ministry of Trade and Integration, this was the immediate trade goals aimed for during the second round of negotiations for the Free Trade Agreement (FTA) between the Eurasian Economic Union (EAEU) and Indonesia. The EAEU includes Kazakhstan along with Armenia, Belarus, Kyrgyzstan, and Russia.
Kazakhstan and Indonesia also identified key sectors of cooperation, especially in the halal industry and trade of food products, aimed at facilitating the achievement of this target.
In the first five months of 2023, the total trade turnover between Kazakhstan and Indonesia reached US$172.4 million, showing a growth of 3.7% compared to the same period in 2022.
On the other hand, imports to Kazakhstan from Indonesia increased 6.3 times, totalling US$94 million from January through May 2023. Key imported items included televisions, monitors, and projectors, accounting for US$41 million with 43.6% of the total, followed by passenger cars at US$18.1 million and 19.2%, palm oil at US$3.9 million with 4.1% data storage devices worth US$2.9 million and 3.1% coconut oil at US$2 million and 2.2%, electronic musical instruments at US$1.9 million and 2% and footwear with textile uppers at US$1.8 million and 1.9%. Road and construction machinery amounted to US$1.4 million being 1.5% of the total.
As and when the Indonesia-EAEU FTA is signed, it would become the second ASEAN country after Vietnam to have an effective free trade agreement with the Eurasian Union.
Both Indonesia and Kazakhstan are Muslim countries which should assist in mutual trade development. Transportation routes used for access are likely to be via China’s east coast Lianyungang Port near Shanghai which connects to Kazakhstan’s Khorgos Port via rail.
Dezan Shira & Associates can assist Kazakh businesses into the Indonesia market and provide market intelligence, legal, tax and trade compliance services. Please email us at email@example.com or see our ‘Doing Business In Indonesia’ guide below.