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Indonesia as Emerging Economic Market: Opportunities for Pakistan

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ISLAMABAD: Indonesia’s Ambassador to Pakistan his Excellency Adam Mulawarman Tugio said that there are several denominators between Pakistan and Indonesia, and in this age of geo-economics much potential is there for joint ventures and collaboration.

He was speaking at a lecture series at Islamabad Policy Research Institute on Monday. The ambassador while eulogizing his presence in the capital observed that he is pleased to be “in a capital of think tanks,” and appreciated the milestones that Pakistan has covered in human development.

Mr Tugio observed that both the countries have contributed immensely towards global peace and security, and had been at the vanguard of non-aligned movement. He said that there is a need for a strong mechanism for restructuring bilateral relations spanning public, defence, economic and socio-cultural realms. He underscored the need for a more sustained engagement at the highest level.

He pointed out at the Preferential Trade Agreement since 2013 between the two countries and said that the volume of trade has exceeded over $1.5billion. He said it could soar up to $3bn. He also hinted at the proposed Trade Agreement in Goods (TIG), and observed that the challenge is to narrow down the list of competitive goods.

While referring to the Indonesian Centennial vision of 2045, the ambassador said Jakarta would be among the top five global economies, with an estimated GDP of $7.3 trillion and per capita income of over $25,000.

He especially referred to ASEAN trading bloc, and underlined the importance of collectivity in mushrooming the trade regime in the entire region. While highlighting the robust economy of China, he said Beijing’s unilateral contribution is to the tune of $700 billion in trade, whereas the entire ASEAN stands at $70bn.

By assuring that the future of world economy lies in Far East Asia, the envoy eulogized the rise of Gwadar Port in Pakistan, which could be an easy outlet to the world of navigation from Central Asia.

Appreciating that Pakistan has put economic diplomacy at the vanguard, he said trade liberalization and pragmatism are the way to go ahead.

Ambassador Tugio also referred to RCEP amalgamation with Australia, and said its economy spans well over $2.3 billion for around 30 percent of world populace.

Envisaging a broadened parameter of cooperation with Pakistan, he said both countries have to look for complementary products, focus on industries having competitive advantage such as leather and textile; and move ahead in investments in Information Technology.

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IPRI is one of the oldest non-partisan think-tanks on all facets of National Security including international relations & law, strategic studies, governance & public policy and economic security in Pakistan. Established in 1999, IPRI is affiliated with the National Security Division (NSD), Government of Pakistan.


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