Jakarta, Aug 30: Indonesia and Pakistan have signed a free trade agreement (FTA) and expect to take their bilateral trade to $2 billion by next year.
“After the implementation of the free trade agreement with Pakistan, trade growth is to be significant this year and may reach between $100-200 million from crude palm oil, footwear, garments, papers and coal commodities. We are seeing potential trade growth between $1.5-2 billion next year,” Xinhua quoted Indonesia’s Deputy Trade Minister Bayu Krisnamurthi as saying.
The pact is expected to take effect from early September.
Bayu said the two countries have agreed to put food products trade under the FTA programme, and added that Pakistan had proposed to sell its horticulture products of Kino oranges in Indonesia with special tariff during the initial FTA programme implementation period.