In our wonderfully multipolar world, the blossoming partnership between Pakistanand Indonesia shines as a key connection in South-South cooperation. As two of the
largest Muslim-majority nations, both countries warmly acknowledge the need to
transition their relationship from mere symbolism to meaningful substance, especiallyin trade and investment. While the bilateral trade volume has notably exceeded the
USD 4 billion threshold, it continues to exhibit a disparity, predominantly favoringIndonesia. Addressing this discrepancy is not just a choice, it’s essential!
Exciting recent developments hint at a renewed commitment in this direction. By
March 2025, Pakistan and Indonesia will have happily finalized over ten memorandaof understanding, embracing sectors such as energy, food security, IT, defense, andhealthcare. Most importantly, talks for a long-awaited Free Trade Agreement (FTA)
are gaining wonderful momentum. This initiative, which has been eagerly
championed by economists and industry leaders on both sides, is set to eliminate tariff
barriers and allow Pakistan to diversify its exports, especially in rice, halal meat, pharmaceuticals, and IT services. In exchange, Indonesia is looking forward to
expanding its presence in Pakistan with consumer electronics, palm-based products, and auto parts. Meanwhile, Indonesia’s Chamber of Commerce and Industry (Kadin) has cheerfullyidentified food security, energy, health, and defense as strategic pillars for lovely
economic collaboration. Trade missions and joint expos planned for August 2025areanticipated to forge tangible commercial connections and inspire cross-investment. This reflects a heartening shift from top-down state diplomacy to vibrant sector-ledintegration, where business communities and chambers of commerce joyfully take thelead.
The trade imbalance isn’t just a number; it beautifully illustrates untapped potential. Pakistan can enhance its competitiveness through value-added products and a clearer
export strategy. Similarly, Indonesia has much to gain from Pakistan’s geostrategic
location as a gateway to Central Asia and western China via CPEC. Collaborative
ventures, port connectivity, and digital platforms are pivotal tools in this exciting
journey. As both nations eagerly prepare for deeper engagement, the message resonates clearly, bilateralism must evolve. Strategic cooperation in this decade should not be limited to press statements; it should be reflected in vibrant supply chains, shared infrastructure, and investment portfolios. Pakistan and Indonesia possess the scale, resources, and political will to create an inclusive model of economic diplomacy, one that roots the Global South not in dependency but in joyful mutual resilience and shared growth.
Author: Muhammad Zamir Awan, Student, Researcher, Freelancer, at Jakarta, Indonesia.