Bangladesh aims to boost bilateral trade with Indonesia to over $10 billion by reducing the existing trade gap and expanding exports of readymade garments, pharmaceuticals and agricultural products.
Commerce Minister Khandakar Abdul Muktadir made the remarks during a meeting with Indonesian Deputy Foreign Minister Mohammad Anis Matta at the Commerce Ministry on Wednesday, according to a press release.
The minister said annual trade between the two countries currently stands at about $4 billion. Bangladesh imports goods worth around $3.5 billion from Indonesia each year, while its exports to the Southeast Asian country total only about $56 million.
He stressed the need to increase Bangladeshi exports to reduce the large trade imbalance, saying bilateral trade could exceed $10 billion if market access barriers were removed.
The meeting discussed progress on a proposed Preferential Trade Agreement (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.
Muktadir said Bangladesh’s pharmaceutical industry produces internationally competitive products and exports them to more than 100 countries. He sought Indonesia’s support in easing procedural requirements, including drug registration processes, to facilitate greater exports of Bangladeshi medicines.
The Indonesian deputy foreign minister welcomed a proposal to hold a solo exhibition of Bangladeshi pharmaceutical products in Jakarta and assured cooperation in organising the event.
Bangladesh and Indonesia have held four rounds of talks on a PTA, but negotiations have remained stalled since 2023 over differences regarding duty-free market access for Bangladeshi readymade garments.
Anis Matta said that although the textile and apparel sectors of the two countries compete with each other, existing issues should be resolved through mutual efforts. He proposed a ministerial-level meeting on the sidelines of an international trade exhibition scheduled to be held in Indonesia from October 14 to 18 and invited the Bangladesh commerce minister to attend.
The two sides also discussed Indonesia’s state-owned energy company Pertamina’s proposal to operate 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.
The commerce minister also proposed mutual recognition of laboratory test results to address testing and registration hurdles affecting potato exports to Indonesia. Bangladesh attempted to export potatoes to Indonesia between 2015 and 2019, but the effort failed to progress due to regulatory complications.
The meeting further discussed mutual recognition of halal certification and standards, including the possibility of government-to-government cooperation between relevant authorities to support trade in halal products.
Both sides expressed interest in strengthening economic ties through expanded trade and investment.
Indonesian Ambassador to Bangladesh Listyo Wati and officials from both countries attended the meeting.
