Bilateral Economic Overview
Indonesia – Pakistan
Bilateral Trade Dynamics
Pakistan represents one of Indonesia's most strategically significant non-traditional export markets, underpinned by a structurally high reliance on Indonesian crude palm oil (CPO) to meet its domestic food processing and oleochemical industry needs. With a population exceeding 240 million and a rapidly expanding middle class, Pakistan offers substantial long-term trade potential that extends well beyond commodities.
This bilateral partnership is pivotal for Indonesia's broader ambition to diversify its export footprint across South Asia. Pakistan serves as a key gateway to the region, while simultaneously supplying Indonesia with strategic commodities including rice, cotton textiles, and fresh citrus produce. In 2025, both governments formally signalled a commitment to entering a new phase of partnership—one that moves beyond palm oil dependency toward structured collaboration in energy, manufacturing, and agricultural trade.
The scale of Pakistan's demand for Indonesian commodities, particularly palm oil and thermal coal, demands a more proactive and diversified export strategy from Indonesia. Expanding the commodity basket, unlocking investment corridors, and strengthening trade facilitation frameworks are now central to the bilateral agenda—building a more resilient and balanced economic relationship.
Pakistan Population
World Palm Oil Importer
New Partnership Phase
Strategic Sectors
"Pakistan-Indonesia trade is entering a new phase, moving beyond palm oil dominance toward a broader strategic partnership in energy, textiles, and agricultural commodities."
Indonesia's Exports → Pakistan
Key Export Commodities
The four commodities that dominate Indonesia's export flows to Pakistan, classified by HS code, based on 2024–2025 bilateral trade data.
Indonesia → Pakistan Export Composition
By HS Code Category · 2024 Estimate
* Indicative estimates based on Ukragroconsult & BPS Indonesia data, 2024.
Crude Palm Oil (CPO)
Accounts for >80% of all Indonesian exports to Pakistan. Used extensively in Pakistan's food processing, soap, and oleochemical industries.
Refined Palm Oil (RBD)
Refined, bleached, deodorised palm oil and fractions — used in Pakistan's consumer food products, margarines, and baking fats.
Thermal Coal
Bituminous coal exported to meet Pakistan's growing power generation needs, particularly for coal-fired power plants under CPEC-linked energy projects.
Paper & Paperboard
Uncoated writing/printing paper (HS 4802) and kraft liner paperboard (HS 4804) supplying Pakistan's rapidly growing packaging and publishing sectors.
Export Data Summary — HS Codes & Descriptions
| Commodity | HS Code | HS Description | Share | Ref. |
|---|---|---|---|---|
| Crude Palm Oil (CPO) | 1511.10 | Crude palm oil, for technical or industrial uses | >80% | [14][15] |
| RBD Palm Oil | 1511.90 | Other palm oil & fractions, refined but not chemically modified | ~5% | [14] |
| Thermal Coal | 2701.12 | Bituminous coal, whether or not pulverised | ~8% | [14] |
| Paper & Paperboard | 4802/4804 | Uncoated paper & kraft paperboard for writing/printing/packaging | ~4% | [14] |
Indonesia's Imports ← Pakistan
Key Import Commodities from Pakistan
Pakistan supplies Indonesia with strategic commodities across food security, industrial raw materials, and fresh produce — classified by HS code, 2024–2025.
Rice (Semi/Wholly Milled)
Pakistan is among the world's top 5 rice exporters. Imports to Indonesia serve both national food security and specialty retail demand for Basmati varieties.
Cotton & Yarn
Raw cotton (HS 5201) and single cotton yarn ≥85% (HS 5205) are critical raw materials for Indonesia's textile and garment manufacturing industry.
Kinnow Citrus
Mandarins and citrus hybrids — the Kinnow, a mandarin-wilking hybrid exclusive to Pakistan, is gaining market share among Indonesian consumers for its sweetness and shelf life.
Import Data Summary — HS Codes & Descriptions
| Commodity | HS Code | HS Description | Ref. |
|---|---|---|---|
| Rice | 1006.30 | Semi or wholly milled rice, whether or not polished or glazed | [14] |
| Cotton & Yarn | 5201/5205 | Cotton, not carded / cotton yarn ≥85% by weight of cotton, single | [14] |
| Kinnow (Citrus) | 0805.20 | Mandarins, clementines, wilkings & similar citrus hybrids, fresh or dried | [14] |
Strategic Spotlight
CPO: The Backbone of
Indonesia's Exports to Pakistan
Crude Palm Oil (CPO) accounts for more than 80% of Indonesia's total export value to Pakistan, making it the single most critical commodity in the bilateral trade relationship. Pakistan ranks among the world's top five importers of palm oil globally, and Indonesia remains its indispensable primary supplier — a dependency that grants Indonesia significant strategic leverage in the South Asian market.
CPO share of total Indonesian exports to Pakistan by value
Pakistan's global ranking as a palm oil importer by volume
Diversification drive begins — beyond CPO toward energy & textiles
Looking Ahead
Outlook & Strategic Priorities
for the Bilateral Partnership
Pakistan's large and growing economy — the fifth most populous country in the world — presents Indonesia with a substantial long-term export opportunity, particularly for value-added manufactured goods, energy products, and processed agricultural commodities. The bilateral trade relationship is structurally asymmetric today, dominated by CPO, but the foundations for diversification are strengthening.
Through 2025, Indonesia–Pakistan trade is entering a qualitatively different phase, characterised by structured government-to-government engagement on energy cooperation, textile trade, and agricultural commodity frameworks. Pakistan's IMF-backed economic stabilisation programme has improved its import capacity, while Indonesia's broader Indo-Pacific trade strategy prioritises deeper South Asia integration as a key pillar of its export expansion policy.
Export Diversification
Expanding Indonesia's export basket beyond palm oil to include manufactured goods, electronics, consumer brands, halal food products, and processed industrial materials targeting Pakistan's 240M+ consumer market.
Energy Cooperation
Strengthening coal supply chains under existing frameworks while exploring renewable energy project collaboration — particularly geothermal and bioenergy — aligned with Pakistan's energy transition targets and Indonesia's green export ambitions.
Bilateral Investment
Encouraging direct investment flows in downstream palm oil processing, halal manufacturing, and logistics infrastructure — leveraging Pakistan's Special Economic Zones (SEZs) and Indonesia's upstream production capacity.
Trade Facilitation
Advancing the bilateral preferential trade agreement (PTA) into a more comprehensive economic partnership, reducing tariff barriers on industrial goods and improving port-to-port logistics connectivity between Karachi and Tanjung Priok.
Explore Further
Strategic Partners in South Asia & Beyond
References & Data Sources
15 verified sources — click to expand
References & Data Sources
15 verified sources — click to expand
Bibliography & Data Sources (APA Format)
- [1]World's Top Exports. (n.d.). Indonesia's Top Trading Partners 2025. worldstopexports.com
- [2]BPS-Statistics Indonesia. (2024). Export Values by Country/Region (FOB, Million USD), 2000–2024. bps.go.id
- [3]BPS-Statistics Indonesia. (2024). Balance of Trade — Selected Countries (Million USD), 2024. bps.go.id
- [4]BKPM — Indonesia Investment Coordinating Board. (2024). Foreign Direct Investment Realisation Report 2024. bkpm.go.id
- [5]Jakarta Globe. (2024). 2024 Roundup: Indonesia's Foreign Trade Deals. jakartaglobe.id
- [6]ASEAN Briefing. (n.d.). Indonesia's International Free Trade Agreements. aseanbriefing.com
- [7]Reuters. (2024, December 2). Indonesia, Canada sign Comprehensive Economic Partnership Agreement. reuters.com
- [8]European Commission. (n.d.). EU-Indonesia CEPA — Policy Factsheet. policy.trade.ec.europa.eu
- [9]Tradeint.com. (2025). Indonesia Export Data 2025: Top Partners & Product Analysis. tradeint.com
- [10]TradeIndonesia / Instagram. (2026). Indonesia Export Data 2025: A resource-driven trade overview. instagram.com
- [11]Coordinating Ministry for Economic Affairs, Republic of Indonesia. (2025). Indonesia Economic Outlook — RED December 2025. ekon.go.id
- [12]BPS-Statistics Indonesia. (2025). Foreign Trade Statistics Monthly Export, January 2025. bps.go.id
- [13]BPS-Statistics Indonesia. (2025). Exports and Imports of Indonesia, January 2025. web-api.bps.go.id (PDF)
- [14]Ukragroconsult. (2025). Beyond palm oil: Pakistan-Indonesia trade entering a new phase. ukragroconsult.com
- [15]Bilaterals.org. (2026). Pakistan and Indonesia advancing towards deeper economic ties. bilaterals.org