Need stressed for stronger liaison for increased trade with Indonesia

LAHORE: Charge d’ Affaires of Indonesia Rahmat Hindiarta Kusuma has said that this is time of collaboration to bring the trade between the two countries at par of the potential.

He was speaking at the Lahore Chamber of Commerce and Industry. LCCI President Kashif Anwar welcomed the Diplomat and shed light on the trade and economic ties between the two countries in his address of welcome. LCCI Executive Committee Members Raja Hassan Akhter and Mian Attiq ur Rehman were also present.

LCCI President Kashif Anwar expressed LCCI’s eagerness to learn from Indonesian technology and advancements. He agreed with the Diplomat on the significance of economic stability and the low cost of doing business. He urged LCCI members to participate in the 39th Trade Expo-Indonesia, scheduled from October 9 to 12, 2024.

Rahmat Hindiarta Kusuma emphasized the importance of collaboration to elevate the trade between Indonesia and Pakistan to its full potential. He said that Indonesia is the largest economy in Southeast Asia, with stable economic growth. “Indonesia, with a GDP exceeding $1 trillion, is the world’s 16th largest economy and is projected to be the 7th largest by 2030,” he stated. He highlighted that Indonesia’s economic growth has remained stable at around 5% annually over the last two decades.

Indonesian Diplomat stressed the need for stronger liaison between the business communities of both countries, highlighting mutual benefits from each other’s potential and experience. He emphasized the promotion of cooperation in multiple sectors, including tourism, education, health, and IT.

LCCI President Kashif Anwar highlighted the remarkable increase in Pakistan’s exports to Indonesia, which surged from $127 million in 2022-23 to $534 million in 2023-24. This increase elevated the bilateral trade figures from $2.77 billion to $2.95 billion and reduced Pakistan’s trade deficit with Indonesia from $2.5 billion to $1.9 billion.

He said that Pakistan’s imports from Indonesia primarily comprise palm oil, coal, and synthetic fibres for textiles, while major exports to Indonesia include rice, ethyl alcohol, woven fabrics, frozen fish, citrus fruits, leather products, and cotton yarn. He emphasized the potential for Pakistan to further enhance its exports to Indonesia, given Indonesia’s global imports exceeding $220 billion.

The LCCI President identified various products such as wheat, pharmaceutical products, parts for tractors/motorcycles, sugar, copper, dairy products, meat, processed food, and surgical instruments as potential exports.

He suggested utilizing existing trade agreements to reduce tariffs and non-tariff barriers, making it easier and more cost-effective for businesses to trade. He also highlighted the importance of promoting e-commerce and digital trade platforms to facilitate cross-border business growth.

Regarding the tourism sector, Kashif Anwar said that Pakistan’s breathtaking landscapes, rich cultural heritage, and centuries-old civilizations, stressing the untapped potential of tourism between Pakistan and Indonesia. He advocated for increasing the frequency of direct flights, organizing trade delegations, and holding single-country exhibitions on a reciprocal basis to enhance mutual trade relations.

The LCCI President mentioned the Special Investment Facilitation Council (SIFC) established by the Government of Pakistan, which focuses on expediting new investments in defence, agriculture, minerals, IT/telecommunication, and energy. He encouraged the Indonesian Diplomat to inform Indonesian investors about these opportunities and promote joint ventures in Pakistan.

Copyright Business Recorder, 2024