FAISALABAD: Pakistan and Indonesia had inked an MOU in December last and now they are working to carve out a mutually acceptable mechanism for the export of one million tons of rice from Pakistan to Indonesia by 2019, said Indonesian Ambassador Iwan Suyudhie Amri. He was addressing the members of Faisalabad Chamber of Commerce and Industry (FCCI).
He paid glowing tribute to deceased former Ambassador of Indonesia Burhan Muhammad who worked hard to bolster the bilateral relations between the two counties. He said that after his tragic death in helicopter crash, this is his first visit to Faisalabad. The objective of this visit is to introduce myself and to deliberate on enhancing bilateral trade between the two countries, he added.
Tracing the relations between the two countries, he said that it was friendly and cordial since the inception of two countries. However, now we should make serious efforts to translate these relations into economic terms. He said that volume of bilateral trade between the two countries in 2.18 billion dollars which is far less than the existing potential, however, it is maximum incase of Association of Southeast Asian Nations (ASEAN) countries adding that no doubt the balance of trade is in favor of Indonesia but the real issue is bilateral trade as in case of China-Indonesia trade, it is in favor of China. He said that in bilateral trade, both countries get benefits. However, he thinks that the export form Pakistan should increase to a considerable level. He further said that law and order situation has improved in Pakistan and it will definitely have positive impact on its exports to Indonesia.
Quoting CPEC, he said that it will attract foreign investment and all regional countries will enjoy its benefits. He said that Indonesia is a country with huge population of 250 million. “Our domestic market is very strong which has provided us a solid base for speedy economic growth”, he added.
Responding to a question from business community, he said that Indonesian government has postponed the implementation on capital punishment to a Pakistani involved in a narcotics case. He said that it is a government decision. As regards narcotics, daily 40 to 50 deaths are reported due to narcotics and we have to root out this menace which is also eroding our social and moral values. He told that in our total population of 250 million, the number of addicts is 5.1 million. “It is not only a matter of concern for the government but also for the general public”, he added.
Regarding Halal food he said, Pakistan is speedily undertaking the process of Halal food certification which will help it to make maximum Halal exports to the Indonesia.
Commenting on people to people contacts, he said that Indonesia is offering scholarships to Pakistani students which will bring the both communities closer to each other.
Responding to yet another question about health and education related reforms; he said that Indonesia has allocated 20 percent of its budget for education as elementary level education is free. Similarly, cross subsidy is offered in health sector. The rich are charged while the poor are getting free treatment. He hoped that this system will be further improved in the coming years. He also assured to remove the hurdles in the export of rock salt from Pakistan to Indonesia.
Earlier in his address of welcome, Chaudhry Muhammad Nawaz underlined the importance of existing bilateral trade between Pakistan and Indonesia and said that it was 2.18 billion Dollars in 2015. Pakistani exports to Indonesia were only 140 million dollars whereas; Indonesian exports to Pakistan were 2041 million dollars. Thus the balance of trade is in favor of Indonesia.
FCCI SVP Syed Zia Alamdar Hussain said that both countries had inked Preferential Trade Agreement (PTA) in 2012 to enhance their trade. It played a major role in enhancing bilateral trade and the trade volume that was only 700 million dollars in 2010 jumped to 2.18 billion in 2015. He said that Indonesia is a major country exporting Palm Oil to Pakistan. During last 4 years the Indonesian exports to Pakistan has swollen from 30% to 83%. He further told that in 2015 Pakistan imported 2.1 million Tons of Palm Oil, out of which 70% came from Indonesia.
Commenting on the Indonesian Imports, he said although Indonesia is a net producer of Rice yet it imported Rice of 351 million dollars in 2015 but out of this import only 51 million dollars imports were made from Pakistan which were only 14% of the total Indonesian Rice imports. Similarly Indonesia also imported fruits worth 666 million dollars, but again the fruits imported from Pakistan were of 9 million dollars only. He suggested that Indonesia should convince its importers to make maximum imports of these items from Pakistan. Moreover, Indonesia could also import Rock Salt from Pakistan to cater to its needs, he added.
In this connection, he stressed direct links between the Business Communities of the two countries in order to fully capitalize the available trade potential between the two countries. He further said that Indonesia is a major member of the Association of South East Asian Nations (ASEAN) and could also help Pakistan to have access to this 2 Trillion Dollars market.
During question answer session, Muhammad Sanaullah Niazi, Chaudhary Talat Mehmood and Khawaja Waqar raised interesting questions.
FCCI Executive Member Ahmad Hassan offered vote of thanks and demanded that Indonesia should appoint trade attaché in Pakistan as our bilateral trade was growing at a much faster pace.
Later, Dr. Habib Aslam Gabba presented FCCI memento to Indonesian Ambassador Iwan Suyudhie Amri while Indonesian ambassador also presented a symbol of Indonesia to Chaudhary Muhammad Nawz president FCCI.