Indonesia and Pakistan Strengthen Trade Ties with CEPA Ambitions

Expanding Economic Cooperation

Indonesia and Pakistan are taking significant steps to deepen their economic relationship through expanded trade cooperation. The latest development came during the 8th Pakistan Edible Oil Conference (PEOC) in Karachi, where Indonesian Deputy Trade Minister Dyah Roro Esti met with Pakistani Trade Minister Jam Kamal Khan. Their bilateral discussions focused on accelerating the transformation of the existing Indonesia-Pakistan Trade Agreement (IP-PTA) into a more comprehensive Comprehensive Economic Partnership Agreement (CEPA) by 2027.

Key Highlights of the Trade Expansion

1. Palm Oil as Key Commodity: Indonesia has identified palm oil as a primary commodity for export to Pakistan as part of the expanded trade agreement.
2. Technical Negotiations Timeline: Both countries have agreed to initiate technical negotiations in early 2026, building on the progress made under the Indonesia-Pakistan Trade in Goods Agreement (IP-TIGA).
3. Comprehensive Trade Integration: The proposed CEPA aims to create a more comprehensive and sustainable integration of trade in goods, services, and investments between the two nations.

Strategic Background

The recent bilateral meeting was a follow-up to Indonesian President Prabowo Subianto's visit to Pakistan in December 2025, which resulted in several strategic agreements to deepen bilateral trade relations. The planned CEPA is expected to provide a more robust framework for trade and investment cooperation, potentially transforming the economic relationship between Indonesia and Pakistan.