CPEC: Indonesia investing in Allama Iqbal Industrial City and Sindh Dhabeji SEZs, says envoy

Islamabad: Indonesian Ambassador to Pakistan Adam Mulawarman Tugio has said that two Indonesian companies were already investing in the Special Economic Zones (SEZs) including the Allama Iqbal Industrial City in Faisalabad and the Sindh Dhabeji Special Economic Zone in Thatta – under the China-Pakistan Economic Corridor (CPEC).

Speaking to the media here, he maintained that CPEC project would emerge as a game-changer for the entire region through connectivity to Central Asia and Western China.

“Moreover, Indonesia could also provide coal to power projects being established under the CPEC project and the domestic large-scale real estate and manufacturing sector,” he added.

He stated that Pakistan and Indonesia had ample opportunities for cooperation in tourism as both sides could introduce new dimensions in promoting mutual tourism.

The Ambassador informed that Indonesia had provided 500 scholarships for Pakistani students to study in top Indonesian universities.

On the institutional approach he mentioned that the Association of Southeast Asian Nations (ASEAN) and Pakistan have already adopted the action plan, adding that there were 11 areas of importance in which Pakistan and ASEAN countries could work together and one of the areas was trade and investment.

The second, he contended, was related to using the bilateral approach such as Pakistan can build bilateral relations with Indonesia and with other ASEAN member countries and added that by doing this, Pakistan would be able to be accepted as a full dialogue partner status and it would increase political, commercial and economic links with ASEAN member states.

The Ambassador underlined that Pakistan had vast potential to increase its exports to Indonesia, mainly textile, garments, leather products, surgical instruments, and fruits.

He shared that the current bilateral trade between Indonesia and Pakistan is around US $ 2.6 billion; with balance of trade heavily in favor of Indonesia.

To a question related to trade imbalance between Pakistan and Indonesia, the Ambassador underscored that the Preferential Trade Agreement (PTA) between the two countries has enhanced Pakistan’s exports to Indonesia while in future, by signing the Free Trade Agreement (FTA), trade on both sides can be further enhanced.

He said that Indonesia fully supports Pakistan to obtain Full Dialogue Partner status with the ASEAN, which will provide huge economic opportunities for Pakistan with 623 million of potential trade market of the region.