Indonesia-Uzbekistan set to commence negotiations on Preferential Trade Agreement (IU-PTA) to expand market reach and strengthen bilateral economic cooperation. With trade between the two countries growing, this initiative marks a step forward in their long-standing diplomatic relations.
“This is one of the concrete steps of the Ministry of Trade’s priority program to expand the export market,” said Indonesia Trade Minister Budi Santoso, following a meeting with Uzbek Foreign Minister Bakhtiyor Saidov in Jakarta on Monday.
Minister Santoso affirms that the IU-PTA presents a key opportunity for Indonesia to broaden its market. Uzbekistan being the largest population in Central Asia, boasting 36.5 million people, serves as a non-traditional trading partner for Indonesia, the IU-PTA pact holds promising potential. He also urged Uzbekistan to establish a bilateral Joint Working Group (JWG) focusing on trade and investment cooperation between the two nations.
Santoso conveyed his support for Uzbekistan’s bid to join the WTO. Indonesia and Uzbekistan have successfully concluded negotiations on market access for goods and services as part of the accession process. The minister further called on technical teams from both sides to swiftly finalize the procedural details and timeline for signing the Indonesia-Uzbekistan protocol agreement on goods and services, aligning with Uzbekistan’s WTO accession.
Uzbekistan ranks as Indonesia’s 129th export destination and 53rd import source. The bilateral trade volume expanded by 49.04% during 2019-2023. The trade value reached $147.6 million in 2024, marking a 4.67% increase from $141.1 million in the previous year. In this period, Indonesia exported goods worth $25.8 million to Uzbekistan, while its imports from the Central Asian nation amounted to $121.9 million.
Indonesia’s primary exports to Uzbekistan consist of margarine, various animal and vegetable fats and oils, electrical machinery and apparatus, additional margarine, and instant coffee. In return, Uzbekistan supplies Indonesia with potassium chloride, cotton linter pulp, fuel pumps, motor vehicle level gauges, and disodium carbonate.
According to the Ministry of Foreign Affairs (MoFA) records, Indonesia and Uzbekistan have maintained diplomatic relations for 32 years. This meeting signifies both countries’ dedication to strengthen their mutually beneficial cooperation in the future.
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