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Indonesia to ratify Pakistan trade deal to protect palm oil exports

Reuters  |  JAKARTA 

(Reuters) - The will push ahead and ratify a trade deal with to protect $1.5 billion in annual exports to the nation, a said.

is the world's biggest and although it is the dominant exporter to Pakistan, it has been losing market share to the world's number two producer, Malaysia, according to JanMohammed, of Edible Oil Refiners Association.

Indonesia's Coordinating Darmin Nasution said in a statement late on Wednesday that the preferential trade agreement (PTA) with will be ratified by the president,

If does not ratify the deal soon, "Pakistan will terminate the PTA, making lose its crude market worth $1.46 billion", the statement said. could then grab that market share, it said.

Pakistan is expected to buy 70 percent of its from Indonesia this year, down from 80 percent in the past two years, JanMohammed said at an industry conference in Indonesia last week. has picked up market share in Pakistan, he said.

In 2017, Indonesia booked a $2.15 billion overall trade surplus with Pakistan, with total two-way trade of $2.63 billion.

Indonesia is also set to ratify six other deals that have been stalled in parliament for several years without explanation, the statement said.

Indonesia will sign a comprehensive economic partnership agreement with before the end of this year, after leaders of both countries concluded talks on ways to boost trade and investment in areas ranging from cars to cattle.

(Reporting by and Fransiska Nangoy; Additional reporting by Bernadette Christina Munthe; Writing by Gayatri Suroyo; Editing by Neil Fullick)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 08 2018. 12:59 IST