Beyond palm oil, Pakistan-Indonesia trade entering a new phase

Published 2025년 12월 16일

Tridge summary

Pakistan and Indonesia are steadily shaping one of South and Southeast Asia’s most consequential, yet under-reported, economic relationships. What began as a tariff-centred arrangement has matured into a broader commercial partnership driven by commodity flows, rising business-to-business engagement, and an expanding agenda for investment cooperation. Recent figures underline this momentum. Bilateral trade reached $4.2 billion

Original content

in 2024, and early 2025 numbers continue to climb. Between January and September 2025, trade volumes touched $2.92 billion, up from $2.69 billion during the same period of last year. This steady rise reflects both the resilience of commodity flows and the gradual expansion of non-traditional product lines entering each other’s markets. Yet the structural imbalance persists – Indonesia remains the dominant exporter, while Pakistan’s outbound shipments largely remain confined to a narrow set of labour-intensive items. Palm oil remains the anchor of this asymmetry. As one of the world’s largest consumers of imported edible oils, Pakistan depends heavily on Indonesian supply – a reality that shapes pricing, availability, and strategic planning for domestic refiners and food manufacturers. The Indonesian Palm Oil Association reaffirmed in late 2024 and again in 2025 that Indonesia will continue prioritising Pakistan’s edible oil requirements. This stable flow is a valuable assurance ...

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