Mozambique will lower import tariffs for 217 Indonesian products, including palm oil, margarine, rubber, paper products, fruits and fisheries, according to the statement.
In exchange, Indonesia will cut tariffs for 242 products, including cotton, tobacco and nuts, from the southeastern African country, the ministry said.
"With this Indonesia-Mozambique PTA the two countries will be more open, trade will be intensified because the tariffs are better than before," Indonesian Trade Minister Enggartiasto Lukita said in the statement.
He said Jakarta plans to use the PTA as a way to enter markets in the southern and western part of Africa.
In 2018, total trade between the two nations was worth $ 91.88 million, with a $30.9 million surplus for Indonesia.
Indonesia has been intensifying efforts to sign trade deals with more countries, trying to diversify its export markets as its trade with China, its biggest trading partner, weakens.
Palm oil and its derivatives, like soap and industrial mono-carboxylic fatty acids, are Indonesia's main exports to Mozambique.
(Reporting by Bernadette Christina Munthe; Writing by Gayatri Suroyo; Editing by Simon Cameron-Moore)
