Pakistan, Indonesia Move to Deepen Trade Ties with Focus on Rice, Agriculture and Investment

Pakistan has moved to revive trade and investment ties with Indonesia, with a particular focus on rice exports, during talks between federal Commerce Minister Jam Kamal Khan and Indonesia’s Ambassador to Pakistan, Chandra Warsenanto Sukotjo.

Federal Minister Jam Kamal Khan held a detailed meeting with the Ambassador of Indonesia to Pakistan to review and advance bilateral trade, investment, and sector-specific cooperation between both countries.

The Federal Minister outlined Pakistan’s evolving trade strategy, highlighting rice as a key export priority. He told the Indonesian Ambassador that Pakistan remained one of the world’s leading rice exporters, but acknowledged that global price pressures intensified by recent market interventions by major producing countries had made competition more challenging.

The Federal Minister underscored Pakistan’s proposal to re-engage selected partner countries, including Indonesia, through both open-market and government-to-government frameworks, and also called for the revival of the Pakistan- Indonesia rice cooperation framework.

It should be remembered that a government-to-government memorandum of understanding signed in 2015, allowing for up to one million metric tonnes of rice exports annually, expired in 2019. Pakistan has since shared a revised draft agreement with Indonesia and is seeking its early finalisation.

The commerce minister also talked about challenges facing other agricultural exports, particularly kinnow mandarins. Mr Khan said Pakistan was awaiting import quotas from Indonesia to allow uninterrupted seasonal exports, cautioned that delays could harm growers and exporters.

Beyond agriculture, the two sides discussed wider economic cooperation, including energy, biodiesel, minerals and infrastructure development, including opportunities under Special Economic Zones and the possibility of involving friendly countries in CPEC-linked projects.

Jam Kamal Khan has invited Indonesian firms to consider Pakistan as a regional hub for palm oil storage and processing, citing the country’s expanding port and logistics infrastructure and its strategic access to regional markets, and onward supply to Africa, the Middle East, Central Asia, and other markets.

Ambassador Sukotjo welcomed Pakistan’s proposals and said the issues raised, particularly those related to rice cooperation and market access  would be conveyed to Jakarta. He noted Indonesia’s interest in food security, diversified sourcing and competitive pricing.

Both sides agreed to step up institutional engagement, including convening meetings of the Joint Trade and Development Committee, holding trade forums and maintaining regular consultations to advance economic cooperation.