Bangladesh wants to raise bilateral trade with Indonesia to more than $10 billion, reduce the trade gap and increase exports of ready-made garments, pharmaceuticals and agricultural products to the Indonesian market.

The issues came up for discussion at a meeting between Commerce Minister Khandakar Abdul Muktadir and Indonesian Deputy Foreign Minister Muhammad Anis Matta at the Ministry of Commerce on Wednesday.

The commerce minister said bilateral trade between Bangladesh and Indonesia 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 reduce the trade deficit, saying bilateral trade could be raised to more than $10 billion if market-access barriers are removed.

The meeting also discussed the proposed Preferential Trade Agreement (PTA), Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of halal certification, and greater access for Bangladeshi potatoes, pharmaceuticals and vaccines to the Indonesian market.

Muktadir said Bangladesh is producing internationally competitive pharmaceutical and related products, which are exported to more than 100 countries.

He sought Indonesia's cooperation in reducing procedural complications, including product registration requirements, to facilitate greater exports of Bangladeshi pharmaceuticals 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 support for arranging the event.

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

Anis Matta said although Bangladesh and Indonesia compete in the textile and apparel sectors, the two sides should identify the challenges and work together to resolve them.

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 commerce minister and a Bangladeshi delegation to attend the exhibition.

The meeting also discussed Indonesia's state-owned oil and gas company Pertamina's proposed involvement in operating Bangladesh's Single Point Mooring (SPM) terminal.

The two sides explored the possibility of increasing coal imports from Indonesia for Bangladesh's coal-fired power plants.

Muktadir proposed mutual recognition of laboratory test results between the two countries to resolve testing and registration-related complications hindering exports of Bangladeshi potatoes to Indonesia. Efforts to export potatoes to Indonesia between 2015 and 2019 could not progress due to such complications.

The two sides also discussed mutual recognition of halal certification and standards to boost trade in halal products, as well as the possibility of establishing government-to-government cooperation between the relevant authorities of the two countries.

They expressed their interest in strengthening Bangladesh-Indonesia economic ties by expanding trade and investment.