Indonesia-Morocco Trade Surges 33 Percent, Government Prepares Preferential Trade Agreement
Amid a positive trend in non-oil and gas trade performance in 2025, which surged nearly 33 percent to reach USD 235 million, the Governments of Indonesia and Morocco are exploring the establishment of a Preferential Trade Agreement (PTA). The cooperation aims to reduce tariff barriers and enhance the competitiveness of local manufactured products in the Mediterranean region, as well as to secure supplies of strategic industrial raw materials such as phosphate and aluminium.
The initiative was discussed during a bilateral meeting between Indonesia’s Deputy Minister of Industry, Faisol Riza, and Morocco’s Deputy Minister in charge of Foreign Trade, H.E. Omar Hejira. Beyond expanding market access for Indonesian industrial products, the two countries explored strengthening cooperation in trade, investment, the halal industry, and several strategic manufacturing sectors.
"Morocco holds a strategic position as a gateway to North Africa and the Mediterranean region. We see significant opportunities to leverage this advantage to expand access for Indonesian industrial products to regional markets, while also strengthening partnerships in future-oriented industrial sectors such as aerospace, halal industry, pharmaceuticals, and new and renewable energy," stated Indonesia’s Deputy Minister of Industry, Faisol Riza, during the bilateral meeting in Jakarta.
Diplomatic relations between Indonesia and Morocco, established since 1956, serve as the foundation for strengthening economic cooperation. In recent years, the partnership has shown positive developments, reflected in increased bilateral trade and growing opportunities for collaboration across various industrial sectors. Indonesia views this partnership as an opportunity to bolster national industrial competitiveness while expanding its network of cooperation with Africa and surrounding regions.
The potential for bilateral trade between Indonesia and Morocco is driven by increasing exports of various Indonesian manufactured goods to Morocco, such as vegetable oils, rubber and its derivatives, footwear, textiles, machinery and electrical equipment, as well as key commodities like coffee, tea, and spices. Conversely, Indonesia imports fertilisers, aluminium, textiles, and various industrial raw materials from Morocco.
In addition to discussing the Preferential Trade Agreement (PTA), the meeting resulted in a joint commitment to accelerate the strengthening of halal industry cooperation. This commitment was realised with the signing of a Mutual Recognition Agreement (MRA) on Halal Certification between Indonesia’s Halal Product Assurance Agency (BPJPH) and the Moroccan Institute of Standardization (IMANOR) in May 2026. The agreement will facilitate the entry of Indonesian halal products into the Moroccan market without repeated certification processes, while also opening up investment opportunities and the development of the halal industry in both countries.
As a follow-up to strengthening halal industry cooperation, the Ministry of Industry invited the Moroccan Government to participate in the Halal Expo 2026, scheduled for September. The participation is expected to expand business networks, connect industry players from both nations, and unlock greater opportunities for halal product investment and trade.
The cooperation between Indonesia and Morocco is also directed at strengthening the industrial supply chains of both countries. Indonesia sees opportunities to increase imports of strategic commodities from Morocco, such as phosphate and fertiliser raw materials, aluminium, and various minerals needed by the national manufacturing industry. In turn, Indonesia is ready to increase exports of value-added manufactured products, ranging from palm oil-based products, rubber, textiles, and footwear to machinery and electrical equipment.
Beyond the trade sector, the two countries are exploring enhanced cooperation in several priority industrial sectors. In the aerospace industry, Indonesia and Morocco are opening opportunities for collaboration to strengthen the aviation industry supply chain, including supporting the development of maintenance, repair, and overhaul (MRO) activities in Indonesia. The two countries are also exploring cooperation in the pharmaceutical sector, particularly the development of halal medicines and cosmetics, as well as opening opportunities for collaboration in the New and Renewable Energy (NRE) sector to support a more sustainable industrial transformation. This enhanced cooperation will also be supported through human resource capacity building, joint research, investment promotion, industrial exhibitions, and business matching between entrepreneurs.
As a follow-up to the meeting, the Ministry of Industry will coordinate further with stakeholders to prepare for participation in the Indonesia–Morocco Business Forum, planned for early 2027. The forum is expected to serve as a platform for industry players from both countries to explore investment opportunities, expand business partnerships, and accelerate the realisation of various cooperation initiatives discussed during the bilateral meeting.
Through this bilateral meeting, Indonesia and Morocco agreed to strengthen communication and follow up on the various cooperation opportunities discussed. With complementary economic potential and a commitment to closer industrial partnership, both countries are optimistic about expanding market access, accelerating investment, strengthening industrial supply chains, and creating greater added value for future national industrial growth.