New Trade Mechanisms Agreed to Expand Bilateral Commerce
Pakistan and Indonesia have agreed to strengthen their trade and economic relationship by introducing new institutional mechanisms aimed at boosting bilateral commerce. The agreement was finalised during high-level talks between Pakistan’s Federal Minister for Commerce, Jam Kamal Khan, and Indonesia’s Deputy Minister of Commerce.
Both sides described the discussions as productive and forward-looking. They agreed that stronger coordination and structured engagement were necessary to unlock the full trade potential between the two countries. Officials stressed that the partnership would focus on long-term growth and mutual economic benefit.
The talks reflected a shared commitment to diversify trade baskets and reduce existing barriers. Leaders from both sides expressed confidence that enhanced cooperation would help businesses access new markets and investment opportunities.
Joint Trade Committee and Business Engagement Plans
One of the most significant outcomes of the meeting was the decision to establish a Pakistan–Indonesia Joint Trade Committee. The committee will serve as a permanent platform for dialogue on trade-related matters. It will meet regularly to review progress, resolve disputes, and recommend policy improvements.
The Joint Trade Committee is expected to improve coordination between ministries, trade bodies, and regulators. It will also help identify obstacles affecting exporters and importers in both countries.
In addition to the committee, Pakistan announced plans to organise a single-country exhibition in Jakarta. A dedicated Pakistan–Indonesia business forum will also be held alongside the exhibition. These initiatives aim to showcase Pakistani products and services directly to Indonesian buyers and investors.
Officials believe direct business-to-business interaction will play a vital role in increasing trade volumes. The forum is expected to attract exporters, manufacturers, investors, and trade associations from both sides.
Indonesia Shows Interest in Key Pakistani Exports
Indonesia expressed strong interest in importing a wide range of Pakistani products. These include minerals, pharmaceutical products, cosmetics, and agricultural commodities. Indonesian officials highlighted the growing demand for reliable suppliers in these sectors.
The Indonesian side also assured Pakistan of its willingness to explore improved market access for key agricultural exports. These include Pakistani fruits, rice, and industrial potatoes. Enhanced access could help Pakistani farmers and exporters enter Southeast Asian markets more effectively.
During the talks, Jam Kamal Khan called for upgrading the existing preferential trade agreement. He proposed transforming it into a comprehensive economic partnership agreement. Such an upgrade would expand the scope of cooperation beyond tariffs and include services, investment, and industrial collaboration.
Palm oil emerged as a central topic in the discussions. Jam Kamal described palm oil as a critical component of Pakistan’s food and industrial needs. Indonesia, being one of the world’s largest palm oil producers, plays a crucial role in meeting Pakistan’s demand.
Targeting Growth Beyond the $4 Billion Trade Mark
Both countries reaffirmed their commitment to expanding bilateral trade, which currently exceeds $4 billion annually. Officials said the existing volume does not reflect the true potential of the relationship.
They expressed optimism that new platforms like the Joint Trade Committee and business forums would lead to sustained growth. Enhanced cooperation is expected to improve supply chains, reduce transaction costs, and encourage private-sector investment.
The agreement signals a shared resolve by Pakistan and Indonesia to deepen economic engagement. Regular dialogue and structured mechanisms are expected to strengthen trust and deliver tangible results for businesses in both countries.
