Bangladesh eyes over $10b bilateral trade with Indonesia

Bangladesh wants to raise bilateral trade with Indonesia to more than US$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 here today, said a press release.

The commerce minister said bilateral trade currently stands at around $4 billion annually, with Bangladesh importing goods worth about $3.5 billion from Indonesia while its exports to the country amount to only around $56 million.

He stressed the need to increase Bangladesh's exports to Indonesia to narrow the huge trade imbalance.

“Bangladesh-Indonesia bilateral trade can be increased to more than $10 billion if barriers to market access are removed,” the minister said.

The two sides discussed advancing negotiations on the proposed Preferential Trade Agreement (PTA), Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of halal certification, and greater market access for Bangladeshi potatoes, pharmaceuticals and vaccines.

The commerce minister said Bangladesh is producing internationally competitive pharmaceutical products and exporting them to more than 100 countries.

He sought Indonesia's cooperation in reducing procedural complexities, including drug registration requirements, to facilitate greater entry of Bangladeshi pharmaceutical products into 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.

The two countries have held four rounds of discussions on a PTA, but negotiations have remained stalled since 2023 due to differences over duty-free market access for Bangladesh's readymade garment products.

The Indonesian deputy foreign minister said although the textile and apparel sectors of the two countries are competitors, the existing issues should be identified and addressed through mutual efforts.

He proposed a ministerial-level meeting on the sidelines of an international trade exhibition to be held in Indonesia from October 14 to 18.

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

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.

The commerce minister proposed mutual recognition of laboratory test results to resolve testing and registration-related complications affecting Bangladesh's potato exports to Indonesia.

Bangladesh had attempted to export potatoes to Indonesia during 2015-2019, but the initiative could not progress due to such complications.

The meeting 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 relevant authorities of the two countries.

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

Indonesian Ambassador to Bangladesh Listyo Wati and relevant officials from both countries were present at the meeting.

Source: BSS