Jakarta: Indonesian government has confirmed a trade deal with Pakistan to protect $1.5 billion in annual palm oil exports.
Chairman of Pakistan Edible Oil Refiners Association Abdul rasheed Jan Mohammad, told that Indonesia is the leading palm oil exporter Indonesia and Malaysia ranks next to it. Indonesian is a leading exporter to Pakistan, Since last year it is losing the market value to Malaysia.
Darmin Nasution who is Indonesia’s Coordinating Minister of Economic Affairs briefed on Wednesday that Preferential trade Agreement with Pakistan will be signed by the president and sooner or later it will be done.
He further stated if the agreement is not immediately signed, Pakistan will end up preferential Trade agreement and as a result of that Malaysia will try best to take over the place. And $1.50 billion value market share will be lost by Indonesia to second in the list Malaysia.
This year Pakistan is likely to buy 70% of the raw crude oil from Indonesia which is relatively less than the previous years. Malaysia has in past years imported oil to various regions including Pakistan.