Diplomatic Desk:
Bangladesh seeks to increase bilateral trade with Indonesia to over US$10 billion. To achieve this, Commerce Minister Khandaker Abdul Muktadir emphasized reducing the trade deficit, expanding markets for ready-made garments, pharmaceuticals, and agricultural products, and advancing discussions on the long-stalled Preferential Trade Agreement (PTA).
These issues were discussed during a meeting between Commerce Minister Khandaker Abdul Muktadir and Indonesian Deputy Foreign Minister Mohammad Anis Matta at the Ministry of Commerce on Wednesday (October 7, 2026).
The Commerce Minister noted that annual trade between Bangladesh and Indonesia stands at approximately $4 billion. Of this, Bangladesh’s imports from Indonesia account for about $3.5 billion, whereas Bangladesh exports goods worth only around $56 million to that country. Increasing Bangladesh’s exports is essential to narrowing this trade gap.
He stated that if market access barriers are removed, it is possible to raise the trade volume between the two nations beyond $10 billion. The meeting also covered the PTA, the Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of Halal certification, and market access for Bangladeshi potatoes, medicines, and vaccines in Indonesia.
Bangladesh Seeks to Expand Pharmaceutical Market in Indonesia
The Commerce Minister highlighted that Bangladesh produces international-standard medicines and pharmaceutical products, which are exported to over 100 countries worldwide. He sought Indonesia’s cooperation in easing procedural complexities—such as drug registration—to boost the export of these products to the Indonesian market.
Meanwhile, the Indonesian Deputy Foreign Minister welcomed the proposal to organize a ‘solo exhibition’ of Bangladeshi pharmaceutical products in Jakarta and assured cooperation in arranging the event. Urgency to Advance PTA Discussions
Although four rounds of discussions regarding a Preferential Trade Agreement (PTA) have taken place between the two nations, talks have stalled since 2023 due to differences of opinion concerning duty-free market access for ready-made garments. Indonesia’s Deputy Foreign Minister noted that while there is competition between the two countries’ textile and garment industries, it is essential to identify the issues and take initiatives to resolve them.
He proposed a ministerial-level meeting between the two countries during the international trade exhibition scheduled to be held in Indonesia from October 14 to 18. He also invited Bangladesh’s Commerce Minister and a delegation to participate in the exhibition.
Discussions on Energy and Agricultural Products
During the meeting, the proposal for Indonesia’s state-owned oil and gas company, Pertamina, to operate Bangladesh’s Single Point Mooring (SPM) terminal was highlighted. Additionally, the potential for increasing coal imports from Indonesia for Bangladesh’s coal-fired power plants was discussed.
To resolve complexities regarding laboratory testing and registration for Bangladeshi potato exports, the Commerce Minister proposed the mutual recognition of test results between the two countries. Although initiatives to export potatoes were undertaken between 2015 and 2019, they did not progress due to these complications.
Discussions were also held on the mutual recognition of Halal certification and standards to boost trade in Halal products. The possibility of establishing government-to-government cooperation between the relevant authorities of both countries in this regard was also explored.
Both sides expressed interest in further strengthening economic ties between Bangladesh and Indonesia by enhancing trade and investment. Officials from both countries, including Indonesia’s Ambassador to Bangladesh, Heru Hartanto Subolo, were present at the meeting.
