Bangladesh eyes to push Indonesia trade beyond $10bn

Bangladesh wants to more than double bilateral trade with Indonesia to over $10 billion by reducing the trade gap and expanding exports of garments, pharmaceuticals and agricultural products, while seeking to revive stalled negotiations on a preferential trade agreement (PTA).

The issues were discussed at a meeting between Bangladesh Commerce Minister Khandaker Abdul Muktadir and Indonesian Deputy Foreign Minister Mohammad Anis Matta at the Ministry of Commerce on Wednesday (October 7).

The two sides also discussed a comprehensive economic partnership agreement (CEPA), energy cooperation, mutual recognition of halal certification, and greater access for Bangladeshi potatoes, medicines and vaccines to the Indonesian market.

Muktadir said annual trade between the two countries currently stands at around $4 billion, with Bangladesh importing roughly $3.5 billion worth of goods from Indonesia while exporting only about $56 million.

He said Bangladesh could raise bilateral trade beyond $10 billion if barriers to market access were removed and Bangladeshi exports expanded.

The minister particularly sought Indonesian cooperation in expanding exports of Bangladeshi pharmaceuticals. He said Bangladesh produces medicines and pharmaceutical products that meet international standards and exports them to more than 100 countries.

He urged Indonesia to help ease registration and other procedural hurdles for Bangladeshi pharmaceutical products entering its market.

Matta welcomed a proposal to organise a solo exhibition of Bangladeshi pharmaceutical products in Jakarta and assured Bangladesh of cooperation in arranging the event.

Negotiations on a PTA between the two countries have been held in four rounds but have remained stalled since 2023 over differences regarding duty-free market access for Bangladeshi garments.

Matta said the two countries' textile and apparel industries are competitors, but the issues should be identified and addressed through dialogue.

The Indonesian deputy foreign minister proposed a ministerial-level meeting during an international trade exhibition scheduled to be held in Indonesia from October 14 to 18. He also invited the Bangladeshi commerce minister and a delegation to attend the exhibition.

The meeting also covered Indonesia's state-owned oil and gas company Pertamina's proposed role in operating Bangladesh's Single Point Mooring (SPM) terminal, as well as the possibility of increasing coal imports from Indonesia for Bangladesh's coal-fired power plants.

On potato exports, Muktadir proposed mutual recognition of test results to resolve laboratory and registration-related complications. Bangladesh attempted to export potatoes to Indonesia between 2015 and 2019, but the initiative stalled over such procedural hurdles.

The two sides also discussed mutual recognition of halal certificates and standards to facilitate greater trade in halal products, including the possibility of establishing government-to-government cooperation between the relevant authorities.

Both sides expressed interest in strengthening economic ties by expanding trade and investment.

Indonesian Ambassador to Bangladesh Listiyowati and officials from both countries attended the meeting.