Dhaka:Bangladesh is seeking to significantly increase its bilateral trade with Indonesia, aiming to exceed $10 billion, while also reducing the trade gap and enhancing exports of ready-made garments, pharmaceuticals, and agricultural products to the Indonesian market.
According to United News of Bangladesh, these topics were discussed during a meeting between Bangladesh's Commerce Minister Khandakar Abdul Muktadir and Indonesian Deputy Foreign Minister Muhammad Anis Matta at the Ministry of Commerce. The current bilateral trade between the two countries is approximately $4 billion annually, with Bangladesh importing goods worth about $3.5 billion from Indonesia and exporting only about $56 million.
The commerce minister emphasized the importance of increasing Bangladesh's exports to address the trade deficit, suggesting that bilateral trade could surpass $10 billion if market-access barriers are removed. Discussions also covered the proposed Preferential Trade Agreement (PTA), Comprehensive Economic Partnership Agreement (CEPA), and other collaborative efforts such as energy cooperation and mutual recognition of halal certification.
Muktadir highlighted Bangladesh's production of internationally competitive pharmaceuticals, exported to over 100 countries, and sought Indonesia's cooperation in easing procedural hurdles to boost pharmaceutical exports. The Indonesian deputy foreign minister expressed support for organizing a solo exhibition of Bangladeshi pharmaceutical products in Jakarta.
Negotiations on a PTA have been stalled since 2023, primarily due to differences over duty-free market access for Bangladesh's ready-made garments. Despite competition in the textile and apparel sectors, Anis Matta suggested that both countries identify challenges and collaborate to resolve them. He proposed a ministerial-level meeting alongside an international trade exhibition in Indonesia from October 14 to 18, inviting the Bangladeshi commerce minister and delegation to attend.
The meeting also explored Indonesia's state-owned oil and gas company Pertamina's potential role in operating Bangladesh's Single Point Mooring (SPM) terminal and increasing coal imports from Indonesia for Bangladesh's power plants. Muktadir proposed mutual recognition of laboratory test results to address complications that hinder potato exports from Bangladesh to Indonesia.
Additionally, the discussion included mutual recognition of halal certification to enhance trade in halal products and the potential for government-to-government cooperation. Both sides expressed a shared interest in strengthening economic ties by expanding trade and investment.