Bangladesh wants to increase bilateral trade with Indonesia to more than $10 billion, with Commerce Minister Khandakar Abdul Muktadir stressing the need to reduce the trade deficit, expand markets for readymade garments, pharmaceuticals and agricultural products, and revive stalled talks on a preferential trade agreement (PTA).
The issues came up at a meeting between Commerce Minister Khandakar Abdul Muktadir and Indonesian Deputy Foreign Minister Muhammad Anis Matta at the Ministry of Commerce on Wednesday.
The commerce minister said bilateral trade between Bangladesh and Indonesia currently stands at around $4 billion a year, with Bangladesh importing about $3.5 billion worth of goods from Indonesia while exporting only around $56 million.
He said Bangladesh needs to increase exports to narrow the trade gap.
“If market access barriers can be removed, bilateral trade can be increased to more than $10 billion,” Muktadir said.
The meeting also discussed the PTA, a Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of halal certification, and greater access for Bangladeshi potatoes, pharmaceuticals and vaccines to the Indonesian market.
Bangladesh seeks larger pharmaceutical market in Indonesia
Muktadir said Bangladesh produces pharmaceutical products that meet international standards and exports them to more than 100 countries.
He sought Indonesia’s cooperation in reducing procedural complications, including drug registration requirements, to increase exports of Bangladeshi pharmaceuticals to the Indonesian market.
The Indonesian deputy foreign minister welcomed Bangladesh’s proposal to organise a solo exhibition of Bangladeshi pharmaceutical products in Jakarta and assured cooperation in arranging the event.
Push to revive PTA talks
The two countries have held four rounds of discussions on a PTA, but talks have remained stalled since 2023 over differences regarding duty-free market access for readymade garments.
The Indonesian deputy foreign minister said that although the textile and apparel industries of the two countries are competitors, the issues should be identified and addressed through joint efforts.
He proposed a ministerial-level meeting during an international trade exhibition scheduled to be held in Indonesia from 14 to 18 October. He also invited the Bangladesh commerce minister and a delegation to attend the exhibition.
Energy and agricultural products
The meeting also discussed Indonesia’s state-owned oil and gas company Pertamina’s proposed operation of Bangladesh’s Single Point Mooring (SPM) terminal.
The two sides also discussed the possibility of increasing coal imports from Indonesia for Bangladesh’s coal-fired power plants.
Muktadir proposed mutual recognition of test results between the two countries to resolve laboratory testing and registration-related complications affecting Bangladeshi potato exports to Indonesia.
Efforts to export potatoes to Indonesia between 2015 and 2019 failed to progress because of such complications.
The two sides also discussed mutual recognition of halal certification and standards to boost trade in halal products, as well as the possibility of establishing government-to-government cooperation between the relevant authorities.
Both sides expressed interest in strengthening Bangladesh-Indonesia economic ties by expanding trade and investment.
Indonesian Ambassador to Bangladesh Listyowati and officials from both countries attended the meeting.
