Trade Scenario Between Bangladesh and Indonesia

Trade Scenario Between Bangladesh and Indonesia

Trade Agreement between The Government of the People’s Republic of Bangladesh and The Government of The Republic of Indonesia was signed on 24 January 2004, considering their mutual interest in strengthening and developing of trade ties and expanding and diversifying of commercial exchange and enhancing the level of trade cooperation based on equality, nondiscrimination and maintenance of mutual interest, superseding the Agreement between The Government of The People’s Republic of Bangladesh and the Government of The Republic of Indonesia, signed at Jakarta on July 29, 1978.  Bilateral trade between Bangladesh and Indonesia would increase by fivefold to around $10 billion in next 10 years as the trade between the two countries grew by 48 per cent in 2014-2018. The bilateral trade between Indonesia and Bangladesh reached to $1.97 billion in 2018 with a 48 per cent growth compared with that of in the year 2014. Though there are ample business opportunities of bilateral trade between the two countries of 420 million population the governments of both the countries has imitated a move to sign preferential trade agreement considering the trade potentials. It is expected
 the PTA will to be signed by the middle of the 2022.

Key Industries: petroleum and natural gas, textiles, automotive, electrical appliances, apparel, footwear, mining, cement, medical instruments and appliances, handicrafts, chemical fertilizers, plywood, rubber, processed food, jewelry, and tourism.

 Key Agriculture Sector: rubber and similar products, palm oil, poultry, beef, forest products, shrimp, cocoa, coffee, medicinal herbs, essential oil, fish and its similar products, and spice. .

Major Export Items in (In million US $): Woven garments (6.773), Knitwear (7.024), Home Textile (0.06), Agri-Products (0.617), Leather and Leather Product (0. 281), Footwear (0.072), Raw Jute (0.696), Jute goods (25.937), others (4.983).

Major Import Items in  (In million US $): Live Animals and Animal Products (0.152); Vegetable Products (39.094); Animal or vegetable fats oils and their cleavage products: prepared edible fats: animal or vegetable waxes (626.05); Prepared foodstuff, Tobacco and manufactured tobacco (3.861), Mineral Products (143.027); Products of the Chemical or Allied Industries (48.787); Plastics & Rubber Articles Thereof (56.864); Raw Hides and Skins, Leather and Articles Thereof; Saddlery and Harness; Travel Goods, Handbags and Similar Containers; Articles of Animal Gut (0.685); Pulp of wood or of other fibrous material; recovered (waste and scrap) paper or paperboard; paper and paperboard and articles thereof (136.052); Textiles & Textile Articles (145.734); Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking Sticks, Seat-Sticks, Whips, Riding- Crops and Parts Thereof Etc (0.193); Articles of Stone, Plaster, Cement, Asbestos, Mica or Similar Materials; Ceramic Products (2.360); Base Metals & Articles of Base Metal (16.311); Machinery and mechanical appliance electrical equipment; parts thereof (7.030); Electrical machinery and equipment an parts thereof; sound recorders and reproducers television image and sound recorders (4.488); Vehicles, Aircraft, Vessels and Transport Equipment (7.644); Others (1.323).

The balance of trade position between Bangladesh and Indonesia from 2008-2009 to 2022-2023 is shown below:

Export and Import Statistics ( Value in milliom US$)

    Source: EPB/ Bangladesh Bank

Top 20 Exported Item in Indonesia for the year 2023-2024:

Total Export Amount: 48,238,815 USD