Pakistan, Indonesia target CEPA upgrade by 2027 to deepen trade ties

Pakistan and Indonesia on Tuesday agreed to accelerate efforts to transform their existing preferential trade agreement (PTA) into a comprehensive economic partnership agreement (CEPA) by 2027, aimed at further strengthening bilateral economic ties.

In a post on X by state broadcaster PTV News, the understanding was reached during a meeting between Prime Minister Shehbaz Sharif and a five-member Indonesian delegation led by Indonesian Minister for Investment and Downstream Industry Rosan Roeslani.

Speaking on the occasion, the premier said, “Pakistan and Indonesia share decades-old brotherly relations that continue to grow stronger with time.”

He conveyed his best wishes to Indonesian President Prabowo Subianto and described the president’s visit to Pakistan last year as highly productive and instrumental in deepening bilateral relations.

PM Shehbaz also recalled his meeting with President Prabowo on the sidelines of the 58th World Economic Forum, noting that Pakistan was keen to further enhance economic cooperation with Indonesia.

He expressed Pakistan’s interest in benefitting from Indonesia’s experience with the sovereign wealth fund model.

Roeslani thanked the prime minister and the government for the warm welcome and hospitality extended to the delegation. He conveyed best wishes from President Prabowo Subianto and reaffirmed Indonesia’s commitment to advancing bilateral relations with Pakistan.

The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Commerce Minister Jam Kamal Khan, Finance Minister Muhammad Aurangzeb, Minister of State for Finance and Railways Bilal Azhar Kiyani, Special Assistants to the Prime Minister Tariq Fatemi and Haroon Akhtar, along with other senior government officials.

FM Dar earlier held delegation-level talks with the minister with discussions focused on strengthening economic and investment ties, reviewing potential collaboration opportunities and mutually beneficial projects, including exchange of best practices and cooperation in priority sectors such as health.

Presentations were made outlining Pakistan’s investment landscape, priority sectors and facilitation mechanisms, while also seeking Indonesia’s experience and expertise, including in sovereign wealth fund structures and downstream investment.

FM Dar reaffirmed the shared commitment to longstanding bilateral relations based on mutual respect and cooperation, with mutual investment being a catalyst of Pakistan-Indonesia partnership.

Earlier today, FM Dar said Roeslani’s visit was timely and pertinent, coming soon after recent presidential-level exchanges between Pakistan and Indonesia.

Addressing the opening session in his welcome note, Dar said wide-ranging and productive discussions were held during the recent exchanges. He noted that both sides had engaged in agriculture, information technology, trade, economy, artificial intelligence, security and defence, and expressed satisfaction over the positive momentum in relations.

Dar stated that Pakistan and Indonesia, as the two largest Muslim-majority countries by population, shared strong bonds and considerable untapped potential for cooperation. He highlighted the close coordination between the two sides at multilateral forums, particularly the Organisation of Islamic Cooperation and the United Nations, as well as other international platforms.

The deputy premier also introduced members of the Pakistani side, including Federal Minister for National Health Services Syed Mustafa Kamal, Minister of State for Investment Qaiser Ahmed Sheikh, Special Assistant to the Prime Minister Tariq Bajwa, and senior officials from relevant ministries.

Read: Indonesia seeks deeper bilateral defence ties

Roeslani thanked FM Dar for the warm hospitality and arrangements, saying he had been directed by the Indonesian president to engage with Pakistan’s leadership and stakeholders to further strengthen collaboration.

Sharing an overview of Indonesia’s economic structure, Roeslani said domestic consumption accounted for about 53% to 54% of economic growth, investment around 29% to 30%, government spending 7% to 8% and net exports about 2%, underlining the critical role of investment in Indonesia’s growth trajectory.

He added that the Danantara Investment Fund was established in February 2025 through the consolidation of state-owned enterprises, bringing together 1,044 companies with total assets nearing one trillion dollars.

The minister noted that the fund reported directly to the president and reinvested dividends from state-owned enterprises without reliance on the government budget.

Read More: Pakistan, Indonesia sign agreements on education, trade

Roeslani expressed Indonesia’s openness to working with Pakistan in collaboration with investment funds and relevant offices, particularly in sectors such as palm oil, agriculture and other priority areas, and voiced optimism for productive and fruitful engagements during the visit.

He arrived in Islamabad on Monday evening at Dar’s invitation. 

The Indonesian minister’s visit adds to a series of bilateral engagements with Pakistan.

In January, the two countries strengthened their economic partnership with the signing of a memorandum of understanding (MoU) on the establishment of the Joint Trade Committee, creating an institutional platform to enhance trade dialogue.

In December, Pakistan and Indonesia signed seven MoU’s and agreements to enhance bilateral cooperation in diverse fields.

These included cooperation in higher education, a grant program for Indonesian state scholarships, facilitation of business development for small and medium enterprises, collaboration between national archives, narcotics control, and cooperation in preventing and combating illicit drug trafficking, cooperation in Halal trade and certification, and cooperation in the field of health.