January 11, 2026 | 01:08 pm
TEMPO.CO, Jakarta – The Indonesian Government and the Government of Pakistan have agreed to accelerate the Indonesia-Pakistan Preferential Trade Agreement (IP-PTA) into a Comprehensive Economic Partnership Agreement (CEPA).
Deputy Trade Minister, Dyah Roro Esti, stated that Indonesia and Pakistan continue to strengthen their strategic partnership in trade and the economy. "We are pushing for the acceleration of the expansion of IP-PTA into CEPA, which is targeted to be realized by 2027," she said during her bilateral meeting with Pakistan's Minister of Trade, Jam Kamal Khan, on the sidelines of the 8th Pakistan Edible Oil Conference (PEOC) in Karachi, Pakistan on Friday, January 9, 2026, as quoted from Antara.
In the meeting, Roro stated that Indonesia also proposed for technical negotiations to begin in early 2026, utilizing the progress of the Indonesia-Pakistan Trade in Goods Agreement (IP-TIGA) as a foundation. "The expansion of cooperation towards CEPA will strengthen the integration of trade in goods, services, and investments in a more comprehensive and sustainable manner."
The bilateral meeting follows the visit of President Prabowo Subianto to Pakistan in December 2025, which resulted in several strategic agreements to deepen and expand the trade cooperation between the two countries.
From January to November 2025, the total bilateral trade has exceeded US$3.6 billion. The value of this trade is mainly driven by Indonesia's dominant exports, resulting in a significant trade surplus. Meanwhile, in 2024, the value of Indonesia-Pakistan bilateral trade reached US$4.1 billion with a 24.07 percent growth.
It is worth noting that since the implementation of IP-PTA in 2013, bilateral trade between Indonesia and Pakistan has more than doubled, exceeding US$4 billion.
The bilateral meeting also marked the signing of a Memorandum of Understanding (MoU) on the Establishment of the Joint Trade Committee (JTC) between Indonesia and Pakistan. The JTC will serve as a regular forum to discuss the enhancement of bilateral trade, trade promotion, information exchange, SME development, and the resolution of standard and trade barriers issues.
The signing of the MoU reaffirms the close synergy between the government and business players, especially in the palm oil and agriculture-based industries. "Palm oil remains the main commodity in Indonesia-Pakistan trade relations," she said.
Pakistan is the third largest destination for Indonesian palm oil exports in the world, with an import value of US$2.77 billion in 2024, accounting for approximately 12 percent of Indonesia's palm oil exports. The B50 mandatory biodiesel policy is also believed not to disrupt the supply of palm oil to Pakistan.
With a large production capacity and an average annual growth of around 5 percent over the last decade, Roro stated that Indonesia is committed to maintaining a stable and reliable supply for Pakistan as a long-term strategic partner.
Furthermore, Indonesia also welcomed the signing of the Public Education MoU on Palm Oil between GAPKI and the Pakistan Edible Oil Refiners Association (PEORA) and the Pakistan Vanaspati Manufacturers Association (PVMA) as a joint step in promoting balanced and fact-based information on sustainable palm oil.
Moreover, Roro highlighted that Indonesia appreciates the operationalization of the D-8 Preferential Trade Agreement (PTA) by Pakistan since January 1, 2025. In the future, she mentioned that Indonesia will prioritize the expansion of the D-8 PTA into CEPA as one of its main priorities during Indonesia's Chairmanship in the D-8 for the 2026-2027 period, with full support from Pakistan.
Read: Six Fighter Jets Escort Prabowo During Visit to Pakistan
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