Islamabad, September 11, 2024: In a significant move towards strengthening bilateral economic ties, Indonesia has expressed its readiness to negotiate a Free Trade Agreement (FTA) with Pakistan. Rahmat Hindiarta Kusuma, the Charge d’Affaires of the Indonesian Embassy, conveyed this during his visit to the Islamabad Chamber of Commerce and Industry (ICCI) on Wednesday.
Kusuma emphasized the potential benefits of an FTA in promoting trade liberalization and enhancing the overall business volume between the two nations. He noted that both countries have a long-standing history of friendship and cooperation, and that further economic integration could serve to narrow the trade gap that currently exists.
During his meeting with ICCI President Ahsan Zafar Bakhtawari, Kusuma highlighted the importance of leveraging the existing Indonesia-Pakistan Preferential Trade Agreement as a foundation for a full-fledged Free Trade Agreement. “We must utilize the preferential trade agreement already in place and build upon it to develop an FTA, which will significantly boost trade and economic cooperation,” Kusuma stated.
He further stressed the need for regular exchange of business delegations and increased market awareness on both sides. According to Kusuma, the chambers of commerce from both countries play a crucial role in facilitating these exchanges and promoting bilateral trade.
In line with promoting trade relations, Kusuma extended an invitation to ICCI members to attend the 39th Trade Expo Indonesia, scheduled from October 9-12. He described the expo as a prime opportunity for Pakistani businesses to explore potential trade and investment avenues in Indonesia, which boasts strategic ties within the ASEAN region, offering access to a market of over 650 million consumers.
The Charge d’Affaires also pointed out that Pakistan could serve as a trade hub for Indonesia in Central Asia, given its geographical advantage. Strengthening business-to-business relations between the two countries would not only benefit both economies but could also unlock new opportunities in sectors such as tourism and services.
Speaking on behalf of ICCI, President Ahsan Zafar Bakhtawari reaffirmed Pakistan’s commitment to fostering closer economic ties with Indonesia. He noted that Pakistan is Indonesia’s sixth-largest trade partner in Asia, underscoring the importance of mutual trust in further deepening economic relations.
Bakhtawari also stressed the need for more direct flights between the two countries, which would enhance trade and investment opportunities. He emphasized that while bilateral trade volume is below potential, targeted efforts and collaborative initiatives could help tap into Central Asian markets and bolster trade.
The meeting concluded with a decision to work together to strengthen Pakistan-Indonesia relations, focusing on key sectors and expanding opportunities for both countries’ businesses.
