*JAKARTA – The Indonesian government is geared up to confirm a trade dealwith Pakistan in order to protect $1.5 billion in annual palm oil exportsto the South Asia region, a cabinet minister stated.*
According to Abdul Rasheed JanMohammed, chairman of Pakistan Edible OilRefiners Association, Indonesia is termed as the world’s major palm oilproducer, and considered as a leading exporter to Pakistan, but still ithas been losing its market value to Malaysia, which is on the second numberin the world.
Indonesia’s Coordinating Minister of Economic Affairs, Darmin Nasutiondeclared in a statement on Wednesday that the preferential trade agreement(PTA) with Pakistan will be confirmed by the president, without anyparliamentary authorization.
He also added, if Indonesia is unable to approve the deal immediately,“Pakistan will conclude the PTA, due to which Indonesia will lose its crudepalm oil market of value almost $1.46 billion, which can be easily takenover by Malaysia then.”
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Furthermore, it is projected that this year Pakistan will probably purchase70% of its crude palm oil from Indonesia, which is comparatively less as of80% in the precedent two years, as Malaysia has already taken market shareof Pakistan.
According to data, in 2017, Indonesia reserved a $2.15 billion totaladditional trade with Pakistan, with a total two-way trade of $2.63 billion.
