Indonesia for tapping true trade potential

Time is ripe for forging partnerships as Indonesia is largest SE Asia economy

LAHORE:

Indonesia Charge d’affaires Rahmat Hindiarta Kusuma has stressed that time is ripe for collaboration with Pakistan to push bilateral trade to levels that can match true potential.

Speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Tuesday, the envoy underlined the importance of forging partnerships as Indonesia was the largest economy in Southeast Asia with stable economic growth.

“Indonesia, with a GDP (gross domestic product) exceeding $1 trillion, is the world’s 16th largest economy and is projected to become the seventh largest by 2030,” he remarked. He highlighted that Indonesia’s economic growth had remained stable around 5% annually over the last two decades.

The diplomat stressed the need for stronger liaison between business communities of the two countries and reaping mutual benefits from each other’s potential and experience.

He emphasised that there were multiple sectors such as tourism, education, healthcare and information technology where Indonesia and Pakistan could promote cooperation.

Speaking on the occasion, LCCI President Kashif Anwar expressed the chamber’s eagerness to learn from Indonesian technology and its advancements in the area. He agreed with the diplomat on the significance of economic stability and low cost of doing business. He urged LCCI members to participate in the 39th Trade Expo Indonesia, scheduled to be held from October 9 to 12, 2024.

Anwar highlighted the remarkable increase in Pakistan’s exports to Indonesia, which surged from $127 million in 2022-23 to $534 million in 2023-24. This increase elevated bilateral trade from $2.77 billion to $2.95 billion and reduced Pakistan’s trade deficit with Indonesia from $2.5 billion to $1.9 billion.

Pakistan’s imports from Indonesia mainly comprise palm oil, coal and synthetic fibres for textile while its major exports to Indonesia include rice, ethyl alcohol, woven fabrics, frozen fish, citrus fruits, leather products and cotton yarn. He pointed to the potential for Pakistan to further enhance its exports, given Indonesia’s huge global imports that exceeded $220 billion.