Indonesia and Pakistan Strengthen Economic Ties

Advancing CEPA and Trade Cooperation

Indonesia and Pakistan are set to enhance their bilateral trade relationship through the proposed Comprehensive Economic Partnership Agreement (CEPA), upgrading from the existing Preferential Trade Agreement (PTA) by 2027 ¹

. This development follows President Prabowo Subianto's successful state visit to Islamabad in December 2025, where both nations expressed commitment to expanding their economic cooperation.

The Indonesian Ministry of Trade is actively pursuing the CEPA negotiations, with Vice Minister Dyah Roro Esti Widya Putri leading the efforts during a bilateral meeting with Pakistan's Commerce Minister Jam Kamal Khan in Karachi on January 9, 2026 ¹

. The proposed CEPA aims to deepen economic integration between the two nations by addressing various trade and investment aspects beyond the current PTA framework.

Palm Oil as a Key Cooperation Sector

The Indonesian palm oil industry is emerging as a significant sector for bilateral cooperation between Indonesia and Pakistan. The Indonesian Consulate General in Karachi, in collaboration with the Indonesian Palm Oil Association (GAPKI), organized The Indonesia Palm Oil Networking Reception, marking a crucial step in commemorating 75 years of Indonesia-Pakistan diplomatic relations ²

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Ambassador Chandra W. Sukotjo highlighted that the bilateral relationship has entered a new, more strategic phase following President Prabowo's visit. The palm oil networking event served as a platform to strengthen economic ties and explore potential areas of cooperation in the sector.

Future Prospects and Implications

The proposed CEPA and the focus on palm oil cooperation signal a significant deepening of Indonesia-Pakistan economic relations. If successfully implemented, the CEPA could lead to increased trade volumes, investment flows, and economic integration between the two nations. The palm oil sector, being a key area of cooperation, is likely to benefit from enhanced collaboration and market access.