Pakistan Seeks to Strengthen Economic Cooperation with Indonesia

RRI.CO.ID, Jakarta - Pakistani Ambassador to Indonesia Zahid Hafeez Chaudhri said economic relations between Indonesia and Pakistan hold significant potential for further growth, particularly through stronger trade cooperation under the Indonesia–Pakistan Preferential Trade Agreement (PTA).

“You will soon see the Preferential Trade Agreement between Pakistan and Indonesia, which will then evolve into a Comprehensive Economic Partnership Agreement (CEPA) between the two countries,” Chaudhri said during Pakistan’s 79th Independence Day celebration on Friday evening, August 14, in Jakarta.

Chaudhri said trade relations between the two countries have long been closely linked across various sectors. Pakistani copper traders, soap manufacturers, and palm oil suppliers have operated in Indonesia for many years, while Indonesia widely exports spice products to Pakistan.

He noted that the large populations of both countries serve as a key asset for strengthening economic cooperation. Pakistan has a population of around 250 million, while Indonesia has about 280 million -- together accounting for more than a quarter of the world’s Muslim population.

This demographic strength, Chaudhri continued, can also support the development of the halal industry. The global halal economy is currently estimated at around USD 7 trillion, comprising approximately USD 2.5 trillion in halal products and USD 5 trillion in halal services.

“Pakistan and Indonesia not only have the potential to advance the halal economy in their respective countries, but together we can also become leaders in the halal industry. The two countries have also signed a memorandum of understanding (MoU) to strengthen cooperation in the halal industries of Indonesia and Pakistan,” he said.

On the same occasion, President of the Indonesia–Pakistan Business Council (IPBC) Ahmed Sultanbhai said this year’s Independence Day celebration marks the beginning of a new chapter in bilateral business relations.

“Our goal is simple: to create more opportunities for Indonesians and Pakistanis to collaborate, trade, invest, and understand one another better,” Sultanbhai said.

Pakistan is an important economic partner for Indonesia, with bilateral trade valued at approximately USD 4.26 billion in 2025—a 2.9 percent increase from 2024. Indonesia’s exports reached around USD 4.11 billion, while imports from Pakistan amounted to roughly USD 153 million.

Indonesian Deputy Minister of Trade, Dyah Roro Esti Widya Putri, said these figures reflect a strong economic partnership between the two countries. “But they also open the door to many untapped opportunities that can still be developed,” Dyah said.

She noted that Pakistan’s demand for palm oil represents one of the main opportunities. In 2025, palm oil and its fractions are projected to contribute more than USD 3.2 billion to Indonesia’s exports to Pakistan. (Gusti Panji)