Indonesian President Joko Widodo or Jokowi welcomed Sri Lanka‘s desire to establish a preferential trade agreement or PTA with Indonesia. Jokowi made the statement during bilateral talks with President Ranil Wickremesinghe on the sidelines of the Belt and Road Forum in Beijing, China, on Tuesday, Oct. 17.
According to the Palace’s Press Bureau, the trade volume between Indonesia and Sri Lanka declined by 27.5 percent in 2022. “Therefore, joint efforts are needed to increase the value of trade between the two countries,” as read in the press statement released by the Presidential Secretariat without elaborating on the details.
PTA is a trade bloc that gives preferential access to certain products from participating countries. This is done by reducing, but not eliminating, tariffs. It is the initial stage of economic integration.
During the meeting, Jokowi also asked Sri Lanka to revoke its policy of banning the import of Indonesian palm oil, underlining that palm oil is the country’s leading commodity produced by paying attention to environmental standards.
“I propose the establishment of a special mechanism to reopen access to the Indonesian palm oil market in Sri Lanka,” Jokowi said.
Sri Lanka banned the import of palm oil, including from Indonesia, in April 2021, a decision that then-president Gotabaya Rajapaksa said was aimed at ridding the country of palm oil plantations and consumption.
Additionally, Jokowi and Ranil also discussed cooperation in the blue economy and other areas, including the procurement of train cars and electronic passport printing.
