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Bangladesh aims to increase bilateral trade with Indonesia to more than US$10 billion by narrowing 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 in Dhaka today, according to a press release.
The 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 substantially increase Bangladesh’s exports to Indonesia to reduce the huge trade imbalance.
“Bangladesh-Indonesia bilateral trade can be increased to more than $10 billion if barriers to market access are removed,” Muktadir said.
The two sides discussed ways to advance negotiations on a proposed Preferential Trade Agreement (PTA) and Comprehensive Economic Partnership Agreement (CEPA), as well as 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 access for Bangladeshi pharmaceutical products to 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 Dhaka of 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 Bangladeshi readymade garment products.
Anis Matta 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 holding a ministerial-level meeting on the sidelines of an international trade exhibition scheduled to be held in Indonesia from October 14 to 18.
He also invited the commerce minister and a Bangladesh delegation to attend the exhibition.
The meeting also discussed Indonesian state-owned oil and gas company Pertamina’s proposed operation of Bangladesh’s Single Point Mooring (SPM) terminal.
The two sides discussed 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 resolve testing and registration-related complications affecting Bangladesh’s potato exports to Indonesia.
Bangladesh attempted to export potatoes to Indonesia between 2015 and 2019, but the initiative could not progress because of 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 the relevant authorities of the two countries.
Both sides expressed 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.
