FAISALABAD - Indonesian Ambassador Iwan Suyudhie Amri has said Pakistan and Indonesia are now working to carve out a mutually acceptable mechanism for the export of one million tonnes of rice from Pakistan to Indonesia by 2019, which he said was a follow up on an MoU the two countries had signed last December.

Addressing the members of Faisalabad Chamber of Commerce and Industry (FCCI) here on Tuesday, the ambassador paid glowing tributes to his predecessor, late Indonesian Ambassador 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 was 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.

Talking about relations between the two countries, he said these were friendly and cordial since inception. “However, now we should make serious efforts to transform these relations into strong economic ones,” he said, and added, “The volume of bilateral trade between the two countries is $2.18 billion which is far less than the existing potential the two countries have. However, it is maximum in case of ASEAN (Association of Southeast Asian Nations) countries.”

Amri added that no doubt the balance of trade was in favour of Indonesia but the real issue was bilateral trade, as was the case with China-Indonesia trade, which was in favour of China.

The Indonesian envoy said that in bilateral trade, both countries got benefits. “However, I think that exports from Pakistan should increase to a considerable level,” he said, and added, “The law and order situation has improved in Pakistan and it will definitely have a positive impact on its exports to Indonesia.”

Referring to CPEC, he said that it would attract foreign investment and all regional countries would enjoy its benefits.  “Indonesia is a country with a 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 a businessman, he said that Indonesian government had postponed the execution of a Pakistani involved in a narcotics case. “It is government’s decision. 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,” the ambassador informed.

He said that in total population of 250 million, the number of addicts was 5.1 million. "It is not only a matter of concern for the government but also for the general public," he clarified. Regarding Halal food, he said, “Pakistan is speedily completing the process of Halal food certification, which will help it to export maximum Halal items to Indonesia.”

Commenting on people to people contacts, he said that Indonesia was offering scholarships to Pakistani students, which would bring both the communities closer to each other. Replying to yet another question about health and education related reforms, he said that Indonesia had allocated 20 percent of its budget for education, and elementary level education in the country was free.

“Similarly, cross subsidy is offered in health sector. The rich are charged while the poor get free treatment,” he said, and hoped, “This system will be further improved in the coming years.” He also assured to remove hurdles in the way of export of rock salt from Pakistan to Indonesia.

Earlier in his welcome address, Chaudhry Muhammad Nawaz underlined the importance of existing bilateral trade between Pakistan and Indonesia and said it was $2.18 billion in 2015. “Pakistan’s exports to Indonesia are only $140 million, whereas Indonesian exports to Pakistan are $2041 million. Thus the balance of trade is in favour of Indonesia,” he said.

Syed Zia Alamdar Hussain, SVP FCCI, said that both countries had inked Preferential Trade Agreement (PTA) in 2012. “It played a major role in enhancing bilateral trade, and the trade volume that was only $700 million in 2010 jumped to $2.18 billion in 2015,” he informed.

He said that Indonesia was a major country exporting Palm Oil to Pakistan. “During the last four years, Indonesian exports to Pakistan have swollen from 30 percent to 83 percent,” he said, and added, “In 2015, Pakistan imported 2.1 million tonnes of Palm Oil, out of which 70 percent came from Indonesia.”

Commenting on the Indonesian imports, he said although Indonesia was a net producer of rice, yet it imported $351 million of rice in 2015; but out of the total rice imported, only $51 million came from Pakistan, which constitutes only 14 percent of the total Indonesian rice imports.

Similarly Indonesia also imported fruits worth $666 million, but again the fruits imported from Pakistan were of $9 million 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 on the available trade potential the two countries have.

He further said that Indonesia was a major member of the Association of South East Asian Nations (ASEAN) and could also help Pakistan to have access to this $2 trillion market.

During question answer session, Muhammad Sanaullah Niazi, Chaudhary Talat Mehmood and Khawaja Waqar raised interesting questions.

Mr Ahmad Hassan executive member FCCI 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 Mr Iwan Suyudhie Amri while Indonesian ambassador also presented a symbol of Indonesia to Chaudhary Muhammad Nawz president FCCI.