Pak-Indonesia posses huge potential in bilateral economic, trade ties: Indonesian CDA

ISLAMABAD, Jul 9 (APP/DNA):The Chargé D’Affaires (CDA) of the Indonesian embassy in Islamabad, Rahmat Hindiarta Kasuma, on Wednesday said that Pakistan and Indonesia have huge potential in bilateral economic and trade ties, and both countries can work on different avenues of the economy.

My conclusion is indeed, Pakistan has huge potentials, immense people, amazing landscapes, magnificent hospitality, talented youth, and finally appetizing foods, the Chargé D’Affaires (CDA), of Indonesian embassy in Islamabad Rahmat Hindiarta Kasuma said this while addressing the ‘Pre- CEO Summit Corporate Dinner’ here along with Minister and President and Founder CEO Club Pakistan, Ijaz Nisar.

The Chargé D’Affaires (CDA), of Indonesia said that doing economic diplomacy in Pakistan is not only about discussing business, investment, trade, and tourism, but it should be accompanied by speaking on a positive image.

Meanwhile appreciating the efforts of President and Founder CEO Club Pakistan, Ijaz Nisar, he said that for this reason, why the Indonesian embassy has strong partnership with the CEO Club, beside becoming exclusive club for the great CEOs, this Club also emphasizes a lot on the importance of very positive image of Pakistan in the world.

Rehmat said that this Club maintains optimistic spirits amid challenges. He let us strengthen our “Look East” Vision by further engagement with the Indonesian economy and the Association of SouthEast Asian Nations (ASEAN) economy.

During 1,5 years of my term as the Indonesian Charge d’Affaires, my team and I have set up the very high target of priority areas of diplomacy in economic relations and People-to-People contact.”

“We double even triple the Indonesian Embassy’s engagement with the broader business community in various cities in Pakistan, from Islamabad and Rawalpindi, to Lahore, Gujrat, Gujranwala, Sialkot, Faisalabad, Karachi and Multan, and then furthermore to Peshawar, Quetta and  “we do not forget other regions like Skardu, and Hunza.”

Based on our experience, selling in Indonesia in Pakistan is challenging. Vice versa, selling Pakistan in Indonesia is also not easy, he said.

The great stories of the relations between President Sukarno and Quid Azam Muhammad Ali Jinnah, mutual support during the 1960s, he said.

According to the President, CEO, Club, Mr  Ijaz Nisar, there is an opportunity in any crisis and difficulty and our partnership has showcased huge success in the recent Trade Expo Indonesia in Jakarta and the first CEO Summit in Bali, he said.

Indonesia CDA said that for the first time in the history of “Trade Expo Indonesia,” Pakistan ranked 9th of the countries sending the biggest delegation, and it was also impactful for further economic cooperation.

He said that after that, there have been reciprocal visits by business communities between the two brotherly countries, from Jakarta to Lahore last April and also from Lahore to Jakarta last June.

He said that the bilateral trade volume has increased in 2024 to $ 4 billion from $ 3, 36 billion in 2023, which is considered a huge surplus on the Indonesian side.

Pakistani exports to Indonesia increased in 2024 to around $ 5 million from around $ 3 million in 2023.

According to IIPC (the Indonesian Investment Promotion Centre), in the first quarter of 2025, Pakistan’s investment realisation in Indonesia reached $ 10.09 million in only marking an exponential rise compared to 2024 of $ 9,5 million.

He said that this remarkable growth reflects the increasing confidence of Pakistani investors in Indonesia’s dynamic and promising economy.

Meanwhile he said that a closer look at the sectors reveals that services attracted the highest share of investment, 45%, equivalent to $4.55 million.

He said this was followed by construction (26%) and trade and reparation services (22%).

Smaller but noteworthy investments also entered the hotel and restaurant sector (5%), and the chemical and pharmaceutical industry (1%).

He said that sectoral spread highlights promising areas for continued and expanded collaboration, especially in pharmaceuticals, which, though currently underrepresented, holds significant future potential.

Talking on Indonesian investment footprints, he said that Indomie, the flagship instant noodle brand of PT Indofood, through local production and distribution, Indomie has not only captured market share in Pakistan but also created jobs, transferred technology, and introduced Indonesian culinary culture to Pakistani households.

This model sets a strong precedent for future Indonesian investments in agro-food processing, halal Fast Moving Consumer Goods (FMCGs), and retail in Pakistan,he said.

Kasuma said that Indonesian mining stakeholders have expressed interest in Pakistan’s Reko Diq gold and copper project, one of the world’s largest untapped reserves.

while still in its early stages, this engagement signals Indonesia’s desire to expand its resource-driven investment footprint in the region.

Indonesian CDA said that in oil and ghee manufacturing, there’s growing interest from Pakistani investors to establish processing units in Indonesia, capitalizing on Indonesia’s position as the world’s leading palm oil producer.

This move could pave the way for bilateral value chains and local value addition.