Jakarta, 16 October 2025 - The Embassy of the Republic of Indonesia in Islamabad, in collaboration with the Consulate General of Indonesia in Karachi, the Indonesian Chamber of Commerce and Industry (Kadin), and the International Creatives Exchange (ICE), hosted the Indonesia–Pakistan Economic Networking Forum on the sidelines of the 40th Trade Expo Indonesia (TEI).

This forum marked a significant milestone in strengthening trade and investment relations between the two friendly nations, Indonesia and Pakistan, who this year celebrate 75 years of diplomatic relations. The event capitalized on the presence of around 60 Pakistani business delegates visiting Indonesia for TEI 2025.

The forum gathered 150 participants, including government officials, business leaders, and trade association representatives from both countries. With the theme “Building a Shared Future,” the event underscored a spirit of collaboration to promote more balanced trade and sustainable investment.

In his opening remarks, H.E. Chandra W. Sukotjo, Ambassador of Indonesia to Pakistan, highlighted the resilience and steady growth of bilateral trade amidst global economic fluctuations.

“Trade between our two countries continues to grow positively. From January to July 2025, Indonesia’s exports to Pakistan reached USD 2.16 billion, an increase of 21.83% compared to the same period last year. However, we believe the potential for cooperation far exceeds these figures,” said Ambassador Chandra.

He also emphasized the importance of expanding cooperation into new sectors such as pharmaceuticals, halal industries, renewable energy, digital economy, and agricultural technology, which offer complementary strengths between the two nations.

“Trade is not just about the exchange of goods, but trust; investment is not merely about capital, but commitment; and networking is not only about contacts, but connection of hearts and ideas,” he added.

Bernardino M. Vega, Vice Chairman for International Relations of Kadin Indonesia, emphasized the need to move beyond trade numbers.

“The world is changing, and so are business models. We must explore more imaginative, value-added collaborations. Indonesia and Pakistan possess great assets: the world’s largest Muslim populations, creativity, and a spirit of collaboration,” he stated.

He also underscored the importance of people-to-people contacts and influencer collaborations as new bridges for economic engagement.

Kadin further encouraged more balanced trade between the two countries and urged Indonesian businesses to expand their presence in the Pakistani market through trade exhibitions and business forums.

On the Pakistani side, Naseem Rashed, Minister for Trade and Investment at the Embassy of Pakistan in Jakarta, reaffirmed the Pakistani government’s commitment to facilitating direct business-to-business (B2B) collaboration.

“As two major Muslim nations with a long history of friendship, our economic ties must reflect that potential. The Embassy of Pakistan is committed to supporting greater cooperation in trade, investment, and culture,” he stated.

Panel Discussions: From Diplomacy to Action

Two panel sessions featured strategic insights from a wide range of speakers.

Panel I explored trade opportunities and market access, highlighting the success of the Preferential Trade Agreement (PTA) and the push towards the Indonesia–Pakistan Trade in Goods Agreement (IP-TIGA). This proposed agreement aims to broaden the scope of tradable goods, remove tariff and non-tariff barriers, and foster more equitable trade.

Panel II focused on joint investment opportunities, especially in energy, pharmaceuticals, and halal industries.

Ricky Eka Virgana Ichsan, Director for South and Central Asia at Indonesia’s Ministry of Foreign Affairs, noted that trade between the two nations has grown by 154.9% since 2012, and that moving toward an FTA would further strengthen mutually beneficial economic structures.

From the business community, Harman Siswanto, Vice Chair of the Pakistan & Afghanistan Bilateral Committee at KADIN Indonesia, stated:

“Pakistan is a gateway to Central Asia. It’s time for Indonesia to play a more active role through trade missions, exhibitions, and business visits. An expanded PTA into IP-TIGA will ease cross-sector export-import flows.”

Uzair Nizam, President of the Pakistan–Indonesia Business & Cultural Network, pointed out that with a combined population of over 500 million, both countries offer a vast market supported by shared values and complementary economic strengths.

However, he noted that this potential remains largely untapped due to limited market information and a low Indonesian business presence in Pakistan. Therefore, both countries are encouraged to strengthen trade promotion, business tourism, and Indonesian product branding to foster a more dynamic and sustainable partnership.

Investment Highlights

Muhammad Iqbal, Deputy Director for Investment Promotion for East, South Asia, Middle East, and Africa at the Indonesian Investment Coordinating Board (BKPM), shared encouraging investment figures:

“Realized investment in the first half of 2025 reached IDR 942.9 trillion, or 49.5% of this year’s target. The government is actively promoting green investment, industrial downstreaming, and digital licensing with a new regulation: automatic approval if not processed within 30 days.”

Pakistan ranks third among South Asian investors in Indonesia, with a total investment of USD 36.6 million across 1,742 projects from 2020 to 2025.

BKPM also highlighted collaborative opportunities in renewable energy, pharmaceuticals, and halal industries, supported by government incentives such as tax holidays, super deductions for R&D, and the Golden Visa program for foreign investors.

Atta ul Karim, CEO of ICE, emphasized the role of creative economy as a new avenue for collaboration.

“We’ve developed the platform pakistan-indonesia.com for business promotion and collaboration — completely free. The creative sectors digital, culinary, and fashion are the backbone of future cooperation,” he said.

Mohammad Bawazeer, Chairman of Bawazeer Group, stressed the importance of resource readiness and government support:

“Overseas investment requires brand awareness, technology, and strong local teams. The Indonesian Embassy’s support with visas, negotiations, and security is vital for successful investment,” he stated.

Meanwhile, Haseeb Khan, Chairman of the Pakistan–Indonesia Business Circle, highlighted the vast potential in the pharmaceutical sector.

“Pakistan has 860 active pharmaceutical companies, but gaps remain in oncology and vaccines. We’ve already signed several MoUs with Indonesian pharma firms for technology transfer and R&D collaboration,” he shared.

Ayub Gaba, owner of PT. K2 Industries, shared tips on investing in Indonesia, particularly regarding regulations, tariffs, and downstream investments.

Launching of Two Commemorative Publications

The forum also served as the launchpad for two notable works celebrating the spirit of Indonesia–Pakistan friendship:

1. “75 Years of Indonesia–Pakistan Bilateral Relations: Two Friends, One Spirit” by Mr. Atta Ul Karim, highlighting key historical milestones and figures over seven decades of ties.

2. “Islamabad to Jakarta: A Personal Reflection” by Mr. Shams Abbasi, offering a heartfelt personal narrative on the enduring friendship between the two nations.

The event concluded with the signing of two Memorandums of Understanding (MoUs):

• Between International Creatives Exchange (ICE) and the Gwadar Chamber of Commerce and Industry

• Between Harmann Pharmaceutical (Pakistan) and PT. Ultra Sakti (Indonesia)

This forum reaffirmed the shared commitment of Indonesia and Pakistan to enter a new era of inclusive, innovative, and sustainable economic collaboration. The Indonesia–Pakistan partnership is more than just economic ties — it is a journey to build a shared and enriched future:
Two Friends, One Spirit.