Indonesia and KATI Seek Stronger Industrial Ties to Expand Two-Way Trade

KARACHI, August 27, 2026: Indonesia and Pakistan should look beyond increasing trade volumes and focus on deeper industrial connections, Indonesian Consul General Mudzakir said during a business meeting with the Korangi Association of Trade and Industry (KATI).

The discussions focused on expanding Pakistan-Indonesia trade through stronger supply chains, industrial partnerships, investment and joint ventures.

Mudzakir met KATI President Muhammad Ikram Rajput, Deputy Patron-in-Chief Mohammad Zubair Chhaya, Senior Vice President Zahid Hameed, Vice President Syed Mohammad Talha Ali and other leading representatives of Karachi’s industrial community.

KATI represents more than 5,000 industrial, commercial and service enterprises.

Focus Shifts From Trade to Industrial Partnerships

Mudzakir said Indonesia and Pakistan should not simply aim to sell more products to each other. Instead, he called for greater integration between industries in both countries.

He said Indonesia could become a stronger sourcing and supply-chain partner for Pakistani manufacturers.

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At the same time, Pakistani businesses could gain greater access to Indonesia’s market by increasing exports of competitive products.

“Indonesia and Pakistan should not only trade more — our industries should become more connected,” Mudzakir said.

The two sides also discussed the need to diversify bilateral commerce and develop a more sustainable trading relationship.

Bilateral Trade Reaches $4.26 Billion

Trade between Indonesia and Pakistan reached around $4.26 billion in 2025, according to the discussions.

Despite the sizeable trade volume, participants also raised concerns about Pakistan’s trade deficit with Indonesia.

The Indonesian side suggested addressing the imbalance by expanding economic opportunities rather than simply reducing existing trade.

Greater Pakistani exports, Indonesian investment in Pakistan, joint ventures and stronger industrial links could help create a more balanced relationship.

KATI Eyes Indonesian Supply Chains

KATI representatives expressed interest in sharing manufacturing and business expertise with Indonesian counterparts.

Such exchanges could create opportunities for industrial communities in both countries to develop direct relationships.

Closer engagement could also help Pakistani manufacturers identify Indonesian suppliers and industrial inputs while opening doors for Pakistani products in Indonesia.

The discussions therefore moved beyond traditional import and export activity towards longer-term industrial cooperation.

Trade Expo Indonesia Offers New Opportunities

The Indonesian Consulate also briefed KATI members about Trade Expo Indonesia (TEI) 2026, scheduled to take place from October 14 to 18 in Greater Jakarta.

KATI members were invited to use the exhibition to explore Indonesian suppliers, industrial inputs and potential business partners.

The Consulate said it was prepared to facilitate targeted business-to-business meetings between Pakistani and Indonesian companies.

Such meetings could help businesses move from initial discussions to commercial partnerships.

Push for Long-Term Economic Cooperation

Indonesia and KATI agreed to maintain closer engagement beyond the trade expo.

The aim is to turn business interest into practical two-way trade, investment and long-term industrial partnerships.

For Pakistan, stronger access to Indonesian supply chains could help manufacturers diversify sourcing. For Indonesia, greater access to Pakistani products and industrial partnerships could open additional commercial opportunities.

The latest engagement signals a broader push to make Pakistan-Indonesia trade more diversified, balanced and connected to industrial development.