South Asia · Non-Traditional Market
Indonesian Flag Pakistani Flag
Strategic Bilateral Partnership

Trade Relations
Indonesia – Pakistan

Pakistan stands as one of Indonesia's most promising non-traditional export markets, driven by a high structural dependency on Indonesian palm oil to meet its vast domestic demand. This partnership holds significant potential for trade diversification, volume growth, and a deepening of bilateral economic ties across multiple sectors.

Data 2024–2025 15 Verified Sources Detailed Report

Key Trade Indicators

>80%
CPO dominates Indonesia's
exports to Pakistan
4
Major export
commodities
3
Major import
commodities
New partnership
phase 2025

Indonesia – Pakistan
Bilateral Trade Dynamics

Indonesia – Pakistan Bilateral Meeting 2025
Indonesia – Pakistan bilateral engagement, 2025 © UrduPoint / 2025

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.

240M+

Pakistan Population

#5

World Palm Oil Importer

2025

New Partnership Phase

4+

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."

— Ukragroconsult / Bilaterals.org, 2025–2026

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

Bilateral Data
Crude Palm Oil (CPO) HS 1511.10
>80%
Refined / RBD Palm Oil HS 1511.90
~5%
Thermal Coal HS 2701.12
~8%
Paper & Paperboard HS 4802 / 4804
~4%
Other Commodities Various HS
~3%

* Indicative estimates based on Ukragroconsult & BPS Indonesia data, 2024.

Export #1
HS 1511.10

Crude Palm Oil (CPO)

Accounts for >80% of all Indonesian exports to Pakistan. Used extensively in Pakistan's food processing, soap, and oleochemical industries.

Export #2
HS 1511.90

Refined Palm Oil (RBD)

Refined, bleached, deodorised palm oil and fractions — used in Pakistan's consumer food products, margarines, and baking fats.

Export #3
HS 2701.12

Thermal Coal

Bituminous coal exported to meet Pakistan's growing power generation needs, particularly for coal-fired power plants under CPEC-linked energy projects.

Export #4
HS 4802 / 4804

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]

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.

Food Security
HS 1006.30

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.

Industrial Input
HS 5201 / 5205

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.

Fresh Produce
HS 0805.20

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]

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 Indonesia → Pakistan Exports (HS 1511.10) 0%
0% 50% 100%
>80%

CPO share of total Indonesian exports to Pakistan by value

Top 5

Pakistan's global ranking as a palm oil importer by volume

2025+

Diversification drive begins — beyond CPO toward energy & textiles

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.

View All 20 Countries

References & Data Sources

15 verified sources — click to expand

Bibliography & Data Sources (APA Format)

  1. [1]World's Top Exports. (n.d.). Indonesia's Top Trading Partners 2025. worldstopexports.com
  2. [2]BPS-Statistics Indonesia. (2024). Export Values by Country/Region (FOB, Million USD), 2000–2024. bps.go.id
  3. [3]BPS-Statistics Indonesia. (2024). Balance of Trade — Selected Countries (Million USD), 2024. bps.go.id
  4. [4]BKPM — Indonesia Investment Coordinating Board. (2024). Foreign Direct Investment Realisation Report 2024. bkpm.go.id
  5. [5]Jakarta Globe. (2024). 2024 Roundup: Indonesia's Foreign Trade Deals. jakartaglobe.id
  6. [6]ASEAN Briefing. (n.d.). Indonesia's International Free Trade Agreements. aseanbriefing.com
  7. [7]Reuters. (2024, December 2). Indonesia, Canada sign Comprehensive Economic Partnership Agreement. reuters.com
  8. [8]European Commission. (n.d.). EU-Indonesia CEPA — Policy Factsheet. policy.trade.ec.europa.eu
  9. [9]Tradeint.com. (2025). Indonesia Export Data 2025: Top Partners & Product Analysis. tradeint.com
  10. [10]TradeIndonesia / Instagram. (2026). Indonesia Export Data 2025: A resource-driven trade overview. instagram.com
  11. [11]Coordinating Ministry for Economic Affairs, Republic of Indonesia. (2025). Indonesia Economic Outlook — RED December 2025. ekon.go.id
  12. [12]BPS-Statistics Indonesia. (2025). Foreign Trade Statistics Monthly Export, January 2025. bps.go.id
  13. [13]BPS-Statistics Indonesia. (2025). Exports and Imports of Indonesia, January 2025. web-api.bps.go.id (PDF)
  14. [14]Ukragroconsult. (2025). Beyond palm oil: Pakistan-Indonesia trade entering a new phase. ukragroconsult.com
  15. [15]Bilaterals.org. (2026). Pakistan and Indonesia advancing towards deeper economic ties. bilaterals.org
All data sourced from official, peer-reviewed, and verified sources Data period: 2024–2025 15 references · TradeIndonesia.co.id