Bangladesh eyes $10bn trade with Indonesia

Bangladesh is seeking to raise bilateral trade with Indonesia to more than $10 billion, with Dhaka pushing to reduce the trade deficit, expand exports of garments, pharmaceuticals and agricultural products, and revive long-stalled negotiations on a preferential trade agreement (PTA).

The issues came up during a meeting between Commerce Minister Khandaker Abdul Muktadir and Indonesian Deputy Foreign Minister Mohammad Anis Matta at the Ministry of Commerce on Wednesday.

Muktadir said annual trade between the two countries currently stands at around $4 billion. Bangladesh imports roughly $3.5 billion worth of goods from Indonesia but exports only about $56 million, leaving a substantial trade imbalance.

He said Bangladesh needs greater access to the Indonesian market to expand exports and narrow the deficit.

“If market-access barriers can be removed, bilateral trade can be increased to more than $10 billion.''

The meeting also covered the PTA, a Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of halal certification, and access for Bangladeshi potatoes, medicines and vaccines to the Indonesian market.
Dhaka Seeks Bigger Share of Indonesia’s Pharma Market

Muktadir said Bangladesh manufactures pharmaceutical products meeting international standards and exports them to more than 100 countries.

He urged Indonesia to simplify procedural requirements, including drug-registration processes, to facilitate greater exports of Bangladeshi medicines and pharmaceutical products to its market.

Indonesia’s 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.
PTA Talks Stalled Since 2023

Bangladesh and Indonesia have held four rounds of negotiations on a PTA, but talks have remained stalled since 2023 over differences regarding duty-free market access for Bangladeshi ready-made garments.

Matta said the textile and apparel industries of the two countries are competitors, but urged both sides to identify the outstanding issues and work towards resolving them.

Bangladesh sees a trade agreement with Indonesia as a key avenue for expanding exports and reducing its heavy trade deficit with the Southeast Asian country.