JAKARTA (TheInsiderStories) - Indonesia and Pakistan hold the 2nd Joint Committee Meeting (JCM) for the Review Indonesia-Pakistan Preferential Trade Agreement (IPPTA) on Feb 16-17 in Islamabad as a move to boost investment and trade relations between the two countries, building on recent years increase, Director General for International Trade Negotiations of the Trade Ministry Iman Pambagyo said.
Indonesia’s exports to Pakistan has contributed the country’s trade surplus in the past few years, while the total trade value between the two countries have also surged by 36.6%, he said.
“Pakistan is an important trading partner of Indonesia which needs special attention because over the last three years, the total trade between the two countries has surged 36.6% to USD2.2 billion in 2015, from USD1.6 billion in 2013. This second JCM Review meeting aims to maintain this growth momentum,” Iman said.
The second JCM Review meeting follows the first JCM Reviewing meeting held in Jakarta on Aug. 15-16 in 2016. One of the key agendas is reviewing the implemetnation of IP-PTA over the last three year in respective countries as well as discussing various ways to increase trade and business-to-business initiatives.
One of issues raised by Indonesia in the JCM Review meeting is opening greater market access to Indonesia’s crude palm oil (CPO) exports to Pakistan. “Indonesia’s interest is to ensure that Indonesia maintains its position as main exporter of CPO to Pakistan, and possible to (Pakistan) neighboring countries,” he said.
He said Indonesia seeks to amend the IP-PTA agreemetn into Indonesia Pakistan Trade in Goods Agreement (IP-TIGA) which covers wider issues. This is in line with Indonesia’s desire to make Pakistan as hub for Indonesia’s exports to the Central Asia regions, considering Pakistan’s strategic location.
Based on the Central Bureau of Statistic (BPS) data, total trade between Indonesia and Pakistan in 2015 reached USD2.2 billion, in which Indonesia recorded surplus of USD1.8 billion. Indonesia’s exports to Pakistan in January-October 2016 reached USD1.54 billion, down 5.61% from USD1.64 billion in 2015. Indonesia’s main exports to Pakistan are CPO (USD1.3 billion0 other nuts (USD97.97 million), coal (USD68.56 million), yarn (USD59 million) and paper and paper board (USD50.4 million).
During the same period, Indonesia’s imports from Pakistan reached USD113.1 million fell 10.27% from USD126 million in previous year. Indonesia mainly imported rice (USD62.9 million), orange (USD23 million), woven fabrics of cotton (USD6.9 million), cotton (USD24.7 million) and frozen fish USD6.4 million. (*)