Bangladesh seeks to boost trade with Indonesia beyond $10 billion

Bangladesh wants to increase bilateral trade with Indonesia to more than $10 billion, with a focus on reducing the trade deficit, expanding market access for garments, pharmaceuticals and agricultural products, and reviving stalled negotiations on a proposed Preferential Trade Agreement (PTA).

These issues were discussed at a meeting between Commerce Minister Khandaker Abdul Muktadir and Indonesia's Deputy Foreign Minister Mohammad Anis Matta at the Ministry of Commerce today (7 October).

During the discussion, the commerce minister said annual trade between Bangladesh and Indonesia currently stands at around $4 billion.

Bangladesh imports goods worth about $3.5 billion from Indonesia, while its exports to the country amount to only around $56 million.

Bangladesh needs to increase exports to Indonesia to narrow the substantial trade gap, Muktadir added.

He said bilateral trade could be raised to more than $10 billion if barriers to market access were removed.

The meeting also covered the PTA, a Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of halal certification, and market access for Bangladeshi potatoes, pharmaceuticals and vaccines in Indonesia.

Bangladesh seeks greater access to Indonesian pharmaceutical market

Muktadir said Bangladesh produces pharmaceutical products that meet international standards, with exports reaching more than 100 countries worldwide.

He sought Indonesia's cooperation in reducing procedural complications, including drug registration requirements, to facilitate greater exports of Bangladeshi pharmaceuticals to the Indonesian market.

Indonesia's deputy foreign minister welcomed a proposal to organise a solo exhibition of Bangladeshi pharmaceutical products in Jakarta and assured Bangladesh of cooperation in organising the event.

Push to revive PTA negotiations

The two countries have held four rounds of negotiations on a PTA, but talks have been stalled since 2023 due to differences over duty-free market access for Bangladeshi garments.

Indonesia's deputy foreign minister said that although the two countries' textile and garment industries compete with each other, efforts should be made to identify the problems and find solutions.

He proposed a ministerial-level meeting between the two countries during an international trade exhibition scheduled to be held in Indonesia from 14 to 18 October.

He also invited Bangladesh's commerce minister and a delegation to attend the exhibition.

Energy and agricultural products discussed

The meeting also discussed the issue of approving a proposal to appoint Indonesia's state-owned oil and gas company Pertamina to operate 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.

To facilitate exports of Bangladeshi potatoes, the commerce minister proposed mutual recognition of laboratory test results to address complications related to testing and registration.

Bangladesh attempted to export potatoes to Indonesia between 2015 and 2019, but the initiative did not progress because of these regulatory and testing-related complications.

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

Both sides expressed interest in strengthening Bangladesh-Indonesia economic relations by expanding trade and investment.

Indonesia's ambassador to Bangladesh, Listyowati, and officials from both countries were also present at the meeting.