Pakistani Deputy Prime Minister and Indonesian Investment Minister Reaffirm Trade and Investment Ties

Pakistan and Indonesia Strengthen Economic Ties with Focus on Investment

Islamabad,Pakistan – High-level talks between Pakistan and Indonesia this week have underscored a mutual commitment to bolstering economic cooperation,with a particular emphasis on expanding trade and investment opportunities. Deputy Prime Minister Ishaq Dar met with Indonesia’s Investment Minister Rosan Roeslani in Islamabad on Tuesday to chart a course for deeper bilateral relations.

roeslani, who also serves as the Chief Executive Officer of Indonesia’s Sovereign Wealth Fund (Danantara), arrived in the Pakistani capital on Monday, signaling the importance Indonesia places on strengthening partnerships within the region. The meetings represent a continuation of increased diplomatic activity between the two nations in recent months.

Key Discussion Points

Discussions between Dar and Roeslani centered on opportunities for collaboration, including an examination of sovereign wealth fund models and ways to facilitate increased investment flows. Both leaders acknowledged that trade and investment are pivotal in solidifying the pakistan-indonesia partnership. The leaders also explored avenues for cooperation in vital sectors, notably healthcare, reflecting a commitment to broader progress initiatives.

Presentations from Pakistan’s Finance Ministry, the Special Investment Facilitation Council (SIFC), and the Board of Investment (boi) detailed the country’s investment climate, priority sectors, and support mechanisms for foreign investors. Pakistan also expressed interest in learning from Indonesia’s experience in establishing and managing sovereign wealth funds and attracting downstream investment.

Growing Bilateral Engagement

This latest exchange follows a series of high-level visits, demonstrating a clear intent to deepen ties. Indonesian President Prabowo Subianto conducted a two-day official visit to Pakistan in December 2025, where agreements were reached to expand trade and cooperation across multiple sectors. In january, Indonesian Vice minister of Trade Dyah Roro Esty Widya Putri and Commerce Minister Jam Kamal Khan formalized the creation of a Joint Trade Committee (JTC) through a memorandum of understanding.

Defense cooperation also received attention, with Indonesian Defense Minister Sjafrie Sjamsoeddin meeting with Pakistani military leaders to discuss expanding collaboration in defense-related domains. This multifaceted engagement signifies a strategic alignment between the two countries.

A Look at Indonesia-Pakistan Trade

Here’s a speedy overview of the economic relationship between Pakistan and Indonesia:

Area	Details
Bilateral Trade Volume (2023)	Approximately $2.5 billion USD (Source: U.S. Trade Administration)
Key Pakistani Exports to Indonesia	Textiles, rice, fruits, leather products
Key Indonesian Exports to Pakistan	Palm oil, cement, paper, automotive products
Investment Focus	Energy, infrastructure, agriculture, tourism

Dar reiterated Pakistan’s longstanding commitment to a strong relationship with Indonesia, founded on mutual respect and the potential of investment to drive shared prosperity. This renewed focus on economic collaboration positions both nations for lasting growth and regional stability.

What impact do you foresee these strengthened ties having on regional trade dynamics? And how can Pakistan best leverage Indonesia’s expertise in sovereign wealth fund management?

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What investment opportunities are available for Pakistani IT companies in Indonesia after the recent bilateral agreement?

Pakistani Deputy Prime Minister and Indonesian Investment Minister Reaffirm Trade and Investment Ties

The deepening economic relationship between Pakistan and Indonesia received a significant boost today, February 10th, 2026, as deputy Prime Minister ishaq Dar met with Indonesian investment Minister Bahlil Lahadalia in Jakarta.Discussions centered on strengthening bilateral trade, attracting further foreign direct investment (FDI), and fostering collaborative projects across key sectors. This meeting underscores a renewed commitment to enhancing economic cooperation between the two nations, both vital players in the South Asian and Southeast Asian economies.

Key Discussion Points & Agreements

The meeting yielded several key agreements and commitments, signaling a proactive approach to economic partnership. These included:

* Increased Bilateral Trade Targets: Both leaders agreed to work towards substantially increasing the current bilateral trade volume, which stands at approximately $2.5 billion. A new target of $5 billion within the next five years was proposed, focusing on diversifying export baskets.

* Investment in Infrastructure: Indonesia expressed strong interest in Pakistani infrastructure projects, particularly in the energy, transportation, and port advancement sectors. Minister Lahadalia highlighted indonesia’s expertise in infrastructure financing and construction.

* Enhanced Cooperation in agriculture: Recognizing the importance of food security, both countries pledged to enhance collaboration in agricultural technology, research, and development. This includes potential joint ventures in fertilizer production and agricultural processing.

* Streamlining Investment Procedures: A joint working group will be established to identify and address barriers to investment, streamlining procedures for businesses operating in both countries. This aims to create a more conducive surroundings for FDI.

* focus on Renewable Energy: Discussions highlighted the potential for collaboration in renewable energy projects, including solar and hydropower, aligning with both nations’ commitments to lasting development.

Sector-Specific opportunities

Several sectors were identified as having particularly strong potential for growth and investment:

* Textiles & Garments: Pakistan’s established textile industry and Indonesia’s growing consumer market present a mutually beneficial possibility for increased trade and potential joint ventures in value-added textile production.

* Pharmaceuticals: Collaboration in pharmaceutical manufacturing and research was discussed, with Indonesia seeking to leverage Pakistan’s cost-competitive pharmaceutical industry.

* Information Technology (IT): Indonesia’s rapidly expanding digital economy offers significant opportunities for Pakistani IT companies to provide software development, outsourcing, and digital services.

* Tourism: Both countries acknowledged the potential for boosting tourism through joint marketing initiatives and improved connectivity. Pakistan’s northern areas and Indonesia’s diverse islands offer unique tourism experiences.

* Financial Services: Exploring opportunities for greater cooperation between financial institutions to facilitate trade and investment flows was also on the agenda.

Indonesia’s Investment Landscape: A Draw for Pakistani Businesses

indonesia consistently ranks among the top destinations for FDI in Southeast Asia. Several factors contribute to its attractiveness:

* Large and growing Economy: Indonesia boasts the largest economy in Southeast Asia, with a GDP exceeding $1.3 trillion.

* Demographic Dividend: A young and rapidly growing population provides a large consumer base and a dynamic workforce.

* Political Stability: Indonesia has maintained relative political stability in recent years, fostering a favorable investment climate.

* Government Reforms: The Indonesian government has implemented a series of reforms aimed at attracting FDI, including simplifying regulations and offering tax incentives.

* Strategic Location: Indonesia’s strategic location along major shipping routes makes it a key hub for regional trade.

Pakistan’s Economic Reforms & investment Potential

Pakistan is actively pursuing economic reforms to attract foreign investment and boost economic growth. Key initiatives include:

* Privatization Program: The government is undertaking a privatization program to improve efficiency and attract private sector investment in state-owned enterprises.

* Special Economic Zones (SEZs): The establishment of SEZs offers attractive incentives for investors, including tax breaks and streamlined regulations.

* Improved Ease of Doing Business: Efforts are underway to improve the ease of doing business in Pakistan, reducing bureaucratic hurdles and promoting clarity.

* Focus on Digital Economy: The government is prioritizing the development of the digital economy, creating opportunities for investment in IT and e-commerce.

* CPEC & Regional Connectivity: The China-Pakistan Economic corridor (CPEC) continues to be a major driver of infrastructure development and economic growth, enhancing regional connectivity.

The Role of Regional Trade Agreements

Both pakistan and Indonesia are members of various regional trade agreements, including the Institution of Islamic Cooperation (OIC) and the Developing 8 (D-8) organization. These agreements provide a framework for promoting trade and economic cooperation among member states. further leveraging these platforms will be crucial for maximizing the benefits of the strengthened bilateral ties.

Future Outlook & Next Steps

The reaffirmation of trade and investment ties between Pakistan and Indonesia represents a positive step towards strengthening economic cooperation between the two countries. The establishment of the joint working group and the commitment to achieving aspiring trade targets demonstrate a clear intent to deepen the relationship. Regular high-level dialogues and continued collaboration on key sectors will be essential for realizing the full potential of this partnership. The next scheduled meeting between the two delegations is planned for Q4 2026,where progress on the agreed-upon initiatives will be reviewed.