KARACHI (Kashmir English): Indonesia and Pakistan are set to sign more than 10 memorandum of understanding (MoUs) and agreements, local media reported citing diplomatic sources.
The two brotherly countries will also engage in talks soon to make progress on a free trade agreement (FTA) to further strengthen economic relations.
Pakistan may focus on IT services, processed food, pharmaceuticals, and halal meat when it comes to high-potential sectors for trade growth while consumer electronics, auto parts and processed palm-based products are far better in Indonesia.
Pakistan-Indonesia trade
In 2023, Pakistan exported goods worth approximately $328.16 million to the brotherly country while Indonesia’s exports to Pakistan were recorded at around $3.03 billion.
The Southeast Asian nation produces nearly half of the world’s refined nickel and two-thirds of the mined nickel and the country intends to achieve a more prominent place in the global electric vehicle (EV) supply chain.
Indonesia is striving to discover and capture new markets in Asia and Central Asia, especially for lithium batteries and Electric Vehicles.
Indonesia’s heavy reliance on nickel for batteries owing to its vast nickel reserves, provides it a comparative advantage in terms of consumer affordability, durability, better thermal stability and higher energy density. Thus, a joint venture for lithium batteries would be a value addition for both nations.
Furthermore, Indonesia’s EV economy is rapidly emerging, having bright prospects, qualifying the country to become a global leader in EV production.
According to the reports, Indonesian President Prabowo Subianto was scheduled to come to Pakistan on his maiden official visit from January 26 to 28, however, it has been delayed and will be rescheduled soon.
It is expected that collaboration in information technology, education, health care, tourism, energy and food, and military ties will be discussed during the expected visit.
Indonesia, comprising of more than 300 ethnic groups, and which has the largest economy in Southeast Asia, is among the leading trading partners of Pakistan.
