Indonesia interested in establishing trade agreement with Tanzania

Indonesia interested in establishing trade agreement with Tanzania

the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan (ANTARA/M Razi Rahman)

Indonesia has 270 million people, so it is a big market for Tanzania if you want to invest
Jakarta (ANTARA) - The Indonesian government has expressed interest in establishing a Preferential Trade Agreement (PTA) with Tanzania to increase the two countries' bilateral trade. The PTA would reduce barriers to tariff trade so that it was expected to encourage trade between the two countries, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said in a written statement in Jakarta Wednesday.

"If possible, Indonesia would like to propose to establish a bilateral PTA with Tanzania. I also note that Tanzania is a member of the East African Community (EAC)," he said during his working visit to Tanzania, East Africa, Tuesday, December 17.

During the visit, Luhut met with Tanzania's Minister of Public Works, Transportation and Communication Isack Mawelwe.

Related news: Indonesia to help Tanzania become middle-income country

There is still plenty of room to increase cooperation in trade between Indonesia and Tanzania, he revealed.

"Indonesia has 270 million people, so it is a big market for Tanzania if you want to invest," Luhut said.

Since 2017, Indonesia has proposed to make a Preferential Trade Agreement (PTA) between Indonesia and EAC.

Tanzania's support will be very meaningful, especially while assigning each official to hold a preliminary discussion on this issue.

This working visit also resulted in an agreement on a follow-up dialogue between Tanzania and Indonesia in February 2020 to strengthen cooperation in the economic field.

Trade between Indonesia and Tanzania recorded a positive trend with 11 percent growth between 2014 and 2018. However, there was a 22 percent decline in the January to September 2019 period year-on-year. (INE)

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