The strategic importance of the market was reaffirmed by Indonesia’s Deputy Minister of Trade Dyah Roro Esti Widya Putri during the Indonesian Palm Oil Networking Reception held in Karachi, Pakistan, on Friday (January 9, 2026).
“Over the past five years, Indonesian palm oil exports to Pakistan have grown by an average of eight percent per year. The government will continue strengthening trade cooperation so the benefits can be felt more widely in both countries,” Dyah Roro said in an official statement, as written by on Tuesday (January 13, 2026).
The event was attended by Pakistan’s Minister of Commerce Jam Kamal Khan, Indonesia’s Ambassador to Pakistan Chandra W. Sukotjo, the Ministry of Trade’s Director for Inter-Regional and International Organizations Negotiations Natan Kambuno, and the Indonesian Consul General in Karachi Mudzakir.
Business leaders were also present, including GAPKI Chairman Eddy Martono, Pakistan Edible Oil Refiners Association Chairman Abdul Rasheed Jan Muhammad, leaders from the Pakistan Vanaspati Manufacturers Association, and representatives of the Indonesian Chamber of Commerce and Industry (KADIN), including Mufti Hamka St. Rajo Basa.
Joint Trade Committee Formed
The gathering also marked a new chapter in Indonesia–Pakistan trade relations with the signing of a Memorandum of Understanding establishing the Indonesia–Pakistan Joint Trade Committee (JTC). The committee is set to become a regular platform to promote trade, facilitate business players, strengthen MSMEs, and resolve technical trade issues more quickly and effectively.
Dyah Roro said the JTC formation follows the Indonesian President’s visit to Pakistan in December 2025, during which both sides agreed to upgrade the Indonesia–Pakistan Preferential Trade Agreement (I-P PTA) toward a Comprehensive Economic Partnership Agreement (CEPA) targeted for 2027.
“The I-P PTA framework has proven effective in boosting bilateral trade, with palm oil serving as its main driver,” she explained.
Palm Oil Remains the Backbone of Trade
Dyah Roro noted that palm oil has served as the foundation of bilateral trade relations for decades. Pakistan remains a strategic partner in the vegetable oils sector.
“Pakistani refiners and processors have built long-term relationships with Indonesian producers based on reliability, efficiency, and trust,” she said.
Palm oil is also recorded as Pakistan’s most consumed vegetable oil. For the past 15 years, palm oil imports have consistently dominated the country’s vegetable oil mix, outperforming soybean, rapeseed, and sunflower oil—highlighting strong and sustained demand.
Indonesia has also consistently supplied around 85–89% of Pakistan’s total palm oil imports, reinforcing Indonesia’s role as the market’s most stable and leading supplier.
Biodiesel Policy Not Expected to Disrupt Exports
Responding to questions regarding Indonesia’s domestic biodiesel expansion, Dyah Roro stressed that Indonesia’s move to strengthen its biodiesel mandate—including preparations toward B50 in 2026—would not disrupt export supply.
“Indonesia carefully calibrates palm oil governance to maintain a balance between domestic needs and exports. Strong production, improved productivity, and prudent stock management ensure export supply remains stable and predictable, especially for long-standing partners like Pakistan,” she said.
Strengthening Sustainability and Public Communication
On sustainability, Dyah Roro highlighted that Indonesia is strengthening palm oil governance through ISPO certification, modernized traceability systems, improved legal compliance, and expanded national certification coverage.
She added that Indonesian palm oil is not only competitive, but also increasingly sustainable. However, misinformation about palm oil remains widespread, making multi-stakeholder collaboration essential.
In this context, Indonesia welcomed the signing of an MoU between GAPKI and PEORA/PVMA, focusing on public education and strengthening positive, fact-based palm oil narratives in Pakistan.
“Palm oil is more than just a commodity. It is a bridge connecting economies, strengthening industries, and deepening people-to-people ties. Indonesia is ready to ensure stable, reliable, and sustainable palm oil supply for Pakistan,” Dyah Roro concluded.
Pakistan’s Minister of Commerce Jam Kamal Khan, meanwhile, said Indonesia remains a strategic partner and expressed hope that cooperation would continue to grow in a mutually beneficial direction, supported by improved ease of doing business between the two countries.
Indonesia also reaffirmed its commitment to regional cooperation platforms, including the Developing Eight (D-8). Indonesia welcomed Pakistan’s implementation of the D-8 PTA and aims to strengthen D-8 economic cooperation as Indonesia assumes the bloc’s chairmanship for 2026–2027.
