Tunisia and Indonesia are on track to sign a significant Preferential Trade Agreement (PTA) by January 2026, a senior official announced this week.
The deal, confirmed by Indonesian Trade Minister Budi Santoso and reported by the Jakarta Globe on November 25, is in its final stages of negotiation. It aims to create a more favorable trading environment for a select list of food and agricultural products between the two nations.
A PTA, which lowers or eliminates tariffs and administrative barriers on specific goods, is at the heart of this new partnership. For Indonesia, the agreement would open the door for its key exports—most notably palm oil, alongside bananas, cocoa, frozen fish, and textile yarn—to enter the Tunisian market with reduced duties.
In return, the Indonesian market will extend similar preferential treatment to a diverse basket of Tunisian products. This includes items ranging from crustaceans to one of Tunisia’s flagship agricultural exports: dates.
The agreement is strategically timed for Tunisia’s olive oil sector, which is actively seeking new outlets for its expected surplus in the 2025/2026 season. The North African country has recently signaled a strategic pivot to diversify its cooking oil exports beyond traditional markets, specifically targeting growing consumers in Asia and South America.
However, the competition is fierce. Current data from Trade Map reveals that Indonesia’s olive oil import market was worth approximately $21 million in 2024, with Tunisia capturing a mere 1% share, overshadowed by dominant suppliers like Italy, Spain, Egypt, and Turkey.
The potential for Tunisian food producers extends far beyond olive oil. According to UNCTAD figures, Indonesia represents a massive food import market, with an average annual value of $23.3 billion between 2021 and 2023, offering significant opportunities for a wider range of Tunisian goods.
The impending pact is positioned as a win-win, designed to enhance the competitiveness of both nations’ targeted products against rival suppliers and forge a stronger economic bridge between North Africa and Southeast Asia.
TunisianMonitorOnline (NejiMed)
