Indonesia, Turkey Set $10 Billion Dollars Bilateral Trade Goal
Businessicy – Indonesia and Turkey have agreed to raise their bilateral trade ambitions by setting a new target of US$10 billion in total trade volume by 2025. This announcement follows a modest US$2.4 billion in trade recorded between the two countries last year, highlighting a significant push for growth in economic cooperation.
To reach this ambitious goal, both nations will accelerate negotiations and finalize the implementation of a limited preferential trade agreement (PTA). Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized the PTA’s importance in streamlining trade processes and removing barriers that currently slow market access.
The agreement will prioritize eliminating both tariff and non-tariff obstacles, focusing on key export-import products between Indonesia and Turkey. Officials expect that this agreement will be negotiated in a shorter time frame compared to broader free trade deals.
Indonesia and Turkey have reaffirmed their commitment to strengthening bilateral economic ties as they face rising global protectionism and economic uncertainty. Speaking at the Turkey-Indonesia CEO Roundtable Meeting, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, called for deeper cooperation between the two nations. He urged both sides to leverage their economic potential to counterbalance the trend of rising trade barriers, particularly those recently introduced by the United States.
The CEO Roundtable Meeting, held in collaboration with Indonesia’s Chamber of Commerce and Industry and Turkey’s Foreign Economic Relations Board (DEIK), drew over 50 business leaders. They represented key sectors including defense, technology, infrastructure, energy, pharmaceuticals, and vocational education. The event served as a platform for both countries to explore new trade and investment partnerships that align with their shared economic priorities.
Hartarto emphasized that by working together, Indonesia and Turkey could become vital players in their respective regions and the broader global market.
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As Indonesia and Turkey approach the 75th anniversary of their diplomatic relations in 2025, leaders from both countries are pushing to elevate their partnership to a more strategic level. With strong domestic markets and robust consumption driving each economy, both nations see new opportunities for expanding trade, investment, and joint ventures across sectors.
Turkey views Indonesia as a key gateway to the ASEAN region, according to Turkish Deputy Minister of Trade Ozgur Volkan Agar. He noted Indonesia’s geographic and economic importance, calling it a “major partner and trade hub.”
Increased cooperation between the two countries will boost regional integration, support industrial development, and strengthen trade resilience amid shifting global alliances and economic challenges.
Indonesia has called on Turkey to expedite the finalization of their limited Preferential Trade Agreement (PTA), emphasizing its importance in deepening bilateral economic cooperation. With Turkey already securing free trade agreements with Malaysia and Vietnam, Indonesian officials stressed that concluding PTA negotiations aligns with both countries’ shared strategic goals.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, highlighted that the PTA could unlock access to key products by eliminating tariff and non-tariff barriers. The agreement is expected to provide a faster negotiation framework compared to full-scale free trade arrangements.
Indonesia also views Turkey as a strategic entry point into the European Union market. Officials believe that enhanced trade ties with Turkey could support ongoing negotiations for the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA). Establishing Turkey as a trade hub would allow Indonesian goods—especially in manufacturing and agriculture—to reach wider European markets with greater efficiency.
Turkish Minister of Agriculture and Forestry, Ibrahim Yukmali, affirmed his country’s openness to importing Indonesian agricultural and forestry products, which can be used as raw materials in Turkey’s food, beverage, and craft industries. At the same time, Turkish agricultural exports hold strong potential in the Indonesian market, offering mutual benefits to both economies.
Yukmali emphasized that trade in agricultural goods could foster inclusive economic growth and industrial integration between the two nations. He also warned against rising global protectionism, noting that such policies would likely hinder the world’s economic recovery and stall growth in major economies.
Both nations agree that stronger cooperation across trade and agriculture sectors can serve as a counterweight to growing global isolationism while opening sustainable pathways for long-term growth and regional influence.
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