Indonesia and Uzbekistan Forge Path to Preferential Trade Agreement Negotiations
Indonesia and Uzbekistan are gearing up to kickstart negotiations on the Preferential Trade Agreement (IU-PTA), marking a significant milestone in their trade relations. Trade Minister Budi Santoso highlighted the potential of the IU-PTA to serve as a gateway for Indonesia to tap into Uzbekistan’s vast market. With a population of 36.5 million, Uzbekistan stands as the largest country in the Central Asian region and presents itself as a non-traditional trading partner for Indonesia.
“This initiative is a crucial part of the Ministry of Trade’s strategic plan to broaden our export horizons,” Minister Santoso shared following a productive meeting with Uzbek Foreign Minister Bakhtiyor Saidov in Jakarta. The dialogue also saw the Trade Minister advocating for the prompt establishment of the Joint Working Group (JWG) on Trade and Investment Indonesia-Uzbekistan.
A Solid Foundation: Setting the Stage for Negotiations
The foundation for the upcoming negotiations was laid during a pivotal meeting between representatives from Indonesia and Uzbekistan in Tashkent back in May 2021. The agreement on forming the Joint Working Group was a key outcome of this gathering, setting the stage for deeper collaboration between the two nations.
Furthermore, Minister Santoso extended his support for Uzbekistan’s bid to join the World Trade Organization (WTO). Both countries have already concluded discussions on market access for goods and services as part of Uzbekistan’s WTO accession process. The Trade Minister urged the technical teams from Indonesia and Uzbekistan to expedite deliberations on the protocol for the Indonesia-Uzbekistan agreement on goods and services within the framework of Uzbekistan’s WTO accession.
Indonesia’s Growing Trade Ties with Uzbekistan
Uzbekistan currently ranks as Indonesia’s 129th export destination and the 53rd import origin, highlighting the evolving trade dynamics between the two nations. The period spanning from 2019 to 2023 witnessed a robust 49.04 percent growth in trade volume, setting the stage for enhanced economic cooperation.
In 2024, the total trade between Indonesia and Uzbekistan surged to US$147.6 million, marking a 4.67 percent increase from the previous year. Notably, Indonesia’s exports to Uzbekistan totaled US$25.8 million, while imports from Uzbekistan amounted to US$121.9 million during this period.
Key exports from Indonesia to Uzbekistan include margarine, animal or vegetable fats and oils, electrical machinery and apparatus, other margarine variants, and instant coffee. On the flip side, Indonesia’s imports from Uzbekistan consist of potassium chloride, cotton linter pulp, fuel pumps, motor vehicle level gauges, and disodium carbonate.
Looking Ahead: Strengthening Bilateral Trade Relations
As the negotiations for the Preferential Trade Agreement gain momentum, both Indonesia and Uzbekistan are poised to deepen their economic ties and explore new avenues for collaboration. The upcoming discussions hold the promise of unlocking fresh opportunities for businesses in both countries and fostering greater mutual prosperity.
In a rapidly evolving global trade landscape, the Indonesia-Uzbekistan partnership stands as a testament to the enduring spirit of cooperation and shared growth. As the two nations navigate the complexities of modern trade dynamics, their commitment to fostering a robust economic alliance remains unwavering. Stay tuned for more updates on the unfolding developments in this exciting chapter of Indonesia-Uzbekistan trade relations.
