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Indonesia's economic diplomacy with Pakistan: Towards Indonesia-Pakistan CEPA 2027
President Prabowo Subianto’s visit to Islamabad in December 2025 marked a strategic opportunity to strengthen Indonesia–Pakistan bilateral relations, particularly in the economic sector. Both countries committed to advancing the Indonesia–Pakistan Preferential Trade Agreement (PTA) toward a Comprehensive Economic Partnership Agreement (CEPA) by 2027. The commitments include preferential treatment for Indonesian palm oil, the development of a 1,200-hectare plantation investment platform, and a healthcare cooperation program involving 3,000 Pakistani medical professionals. This paper proposes a strategy to strengthen bilateral economic relations through a Core CEPA First, Expand Forward approach, prioritizing the completion of the core CEPA framework before expanding cooperation into other strategic sectors. The core framework covers trade in goods, customs facilitation, rules of origin, and institutional review mechanisms. In parallel, the three presidential commitments are to be developed as flagship economic diplomacy initiatives through improved palm oil market access, a well-regulated plantation investment platform, and a phased medical professional mobility program. Defense cooperation and civilian nuclear energy knowledge transfer are positioned as long-term strategic options to be considered once the core CEPA framework is firmly established. Implementation requires coordinated interministerial and interagency efforts led by the Ministry of Foreign Affairs, supported by the Embassy of the Republic of Indonesia in Islamabad, with the Ministry of Trade taking the lead in CEPA negotiations. Monthly technical reviews and quarterly senior-level decision-making meetings are proposed to maintain negotiating coherence, strengthen reciprocity, and ensure the long-term sustainability of the Indonesia–Pakistan strategic partnership.
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