Dhaka – Bangladesh is contemplating raising bilateral trade with Indonesia to $10 billion from the existing $4 billion by reducing the current trade gap and expanding its exports to the East Asian market.
Commerce Minister Khandakar Abdul Muktadir made the remarks during a meeting with Indonesian Deputy Foreign Minister Mohammad Anis Matta at the Commerce Ministry in Dhaka on Wednesday.
The export expansion would come from sectors such as readymade garments, pharmaceuticals, and agricultural products, the minister said, according to a press release from the ministry.
The minister said bilateral trade currently stands at around $4 billion annually, with Bangladesh importing goods worth about $3.5 billion from Indonesia.
Bangladesh’s exports to the country amount to only around $56 million.
“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), the Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of halal certification, and greater market access for Bangladeshi potatoes, pharmaceuticals, and vaccines, the press release said.
Bangladesh is producing internationally competitive pharmaceutical products and exporting them to more than 100 countries, the minister said, seeking Indonesian 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 organize 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 that 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, according to state-run BSS news agency.
Both sides expressed their interest in strengthening Bangladesh-Indonesia economic relations by expanding trade and investment.
