Jakarta. Indonesia is seeking a preferential trade agreement (PTA) with South America's Mercosur bloc as part of efforts to expand access to global markets, Trade Minister Budi Santoso said on Sunday.

The proposal was discussed during Budi's meeting with Brazilian Development, Industry, Trade and Services Minister Márcio Fernando Elias Rosa in Jaipur, India.

"We hope Brazil can help build consensus among Mercosur members and encourage progress in negotiations on an Indonesia-Mercosur PTA," Budi said in a statement.

Indonesia has proposed the PTA as a more limited alternative to a planned Indonesia-Mercosur Comprehensive Economic Partnership Agreement (CEPA), negotiations for which have yet to make meaningful progress.

Mercosur currently comprises Brazil, Argentina, Paraguay, Uruguay and Bolivia.

Budi acknowledged differing views among Mercosur members over the form of a potential trade agreement with Indonesia, which he said had affected progress toward launching CEPA negotiations.

A PTA typically reduces or eliminates tariffs on a selected range of goods agreed upon by participating countries, making it narrower in scope than a CEPA, which generally covers a broader range of issues including goods, services, investment and other areas of economic cooperation.

Budi said Brazil could serve as an important gateway for Indonesian products into Latin America, while Indonesia could provide Brazilian businesses with greater access to Asian markets.

"Trade cooperation between Indonesia and Brazil will not only benefit both countries but can also provide broader access to each other's regions," Budi said.

During the Aug. 7 meeting, Márcio welcomed Indonesia's proposal and expressed Brazil's willingness to continue discussions on Indonesia-Mercosur economic cooperation. He said the Brazilian government would study the proposal further.

Indonesia and Brazil recorded bilateral trade of approximately $7 billion in 2025, with Indonesian exports to Brazil totaling $2.21 billion. [Please verify the $7 billion figure against the original source before publication.]

Indonesia's main exports to Brazil include animal and vegetable fats and oils, vehicles and automotive parts, electrical machinery and equipment, rubber products, and mineral fuels.

Its main imports from Brazil include food-industry residues and animal feed, sugar and confectionery, cotton, tobacco, and metal ores, slag and ash.

Add as a preferred source on Google +