Pakistan, Indonesia agree to deepen trade ties with focus on rice

Pakistan and Indonesia agreed on Tuesday to intensify institutional engagement, including the early convening of the Joint Trade and Development Committee and trade forums.

This was agreed during a meeting between Federal Minister for Commerce Jam Kamal Khan and the Ambassador of Indonesia to Pakistan, Chandra Warsenanto Sukotjo, as per a statement.

During their meeting, the federal minister briefed the ambassador on Pakistan’s evolving trade strategy, with a particular focus on rice exports.

He added that the government is actively working on financial and commercial mechanisms to enhance price competitiveness without compromising quality, enabling Pakistan to sustain and expand its market share

The minister noted that Pakistan remains among the world’s leading rice exporters, offering internationally recognized quality, “while acknowledging that global price competition—especially following recent market interventions by major producers—has created challenges for exporters”.

READ MORE: Pak-Indonesia trade ties discussed

The two sides also recalled that a rice MoU signed in 2015—providing for up to one million metric tons of rice procurement annually on a G2G basis—had expired in 2019.

Pakistan has already shared a revised draft with the Indonesian side and expressed hope for its early finalization to institutionalize long-term cooperation in the staple commodity, the minister shared.

Meanwhile, the minister also raised issues affecting agricultural exports, particularly kinnow, noting that Pakistan was awaiting the issuance of import quotas by Indonesia to ensure uninterrupted seasonal exports, warning that delays could result in losses for growers and exporters.

“Additionally, concern was expressed over the recent increase in food and agricultural testing requirements for Pakistani kinnow, from eight to twenty-four tests, which adds cost and processing time,” the statement said.

The meeting was informed that Pakistan’s Department of Plant Protection is already engaged with Indonesian counterparts to address the matter.

“The Ambassador of Indonesia welcomed Pakistan’s proposals and appreciated the positive momentum generated by recent high-level exchanges between the two countries.

He assured that the issues raised—particularly on rice cooperation, agricultural market access, and trade facilitation—would be conveyed to Jakarta for consideration, noting Indonesia’s strong interest in food security, diversified sourcing, and competitive pricing.”

The two sides agreed to intensify institutional engagement, including the early convening of the Joint Trade and Development Committee and trade forums, as well as virtual consultations to maintain momentum.

“Both reaffirmed their commitment to translating longstanding friendly relations into concrete economic outcomes through structured dialogue, timely decisions, and private-sector engagement.”