{"id":30814,"date":"2025-11-20T09:46:00","date_gmt":"2025-11-20T02:46:00","guid":{"rendered":"https:\/\/gapki.id\/en\/?p=30814"},"modified":"2025-12-03T10:17:48","modified_gmt":"2025-12-03T03:17:48","slug":"indonesian-palm-oil-strengthening-trade-relations-and-ensuring-price-stability-in-pakistans-market","status":"publish","type":"post","link":"https:\/\/gapki.id\/en\/news\/2025\/11\/20\/indonesian-palm-oil-strengthening-trade-relations-and-ensuring-price-stability-in-pakistans-market\/","title":{"rendered":"Indonesian Palm Oil: Strengthening Trade Relations and Ensuring Price Stability in Pakistan\u2019s Market"},"content":{"rendered":"<p data-path-to-node=\"3\"><b>SUSTAINABLE INDONESIAN PALM OIL INDUSTRY &#8211; <\/b><b>Policy Brief<\/b><\/p>\n<h3 data-path-to-node=\"10\">Introduction<\/h3>\n<p data-path-to-node=\"11\"><span data-path-to-node=\"11,1\"><span class=\"citation-303\">In Pakistan, edible oil is not just another grocery item<\/span><\/span><span data-path-to-node=\"11,3\">. <\/span><span data-path-to-node=\"11,5\"><span class=\"citation-302\">It is the invisible thread that binds together the country&#8217;s food economy<\/span><\/span><span data-path-to-node=\"11,7\">. <\/span><span data-path-to-node=\"11,9\"><span class=\"citation-301\">Every roti brushed with ghee, every samosa fried at a roadside stall, every packet of biscuits on a supermarket shelf, and even the soap used in homes has a link back to imported edible oil<\/span><\/span><span data-path-to-node=\"11,11\">. <\/span><span data-path-to-node=\"11,13\"><span class=\"citation-300\">Few commodities rival its role in daily life<\/span><\/span><span data-path-to-node=\"11,15\">.<\/span><!--more--><\/p>\n<p data-path-to-node=\"12\"><span data-path-to-node=\"12,0\">Yet beneath this ubiquity lies a stark vulnerability. <\/span><span data-path-to-node=\"12,2\"><span class=\"citation-299\">Pakistan produces only a fraction of what it consumes<\/span><\/span><span data-path-to-node=\"12,4\">. <\/span><span data-path-to-node=\"12,6\"><span class=\"citation-298\">Domestic oilseed production supplies less than 20 percent of demand, with the remainder imported, primarily palm oil supplemented by soybean and rapeseed derivatives (USDA, 2025)<\/span><\/span><span data-path-to-node=\"12,8\">. <\/span><span data-path-to-node=\"12,10\"><span class=\"citation-297\">This reliance is not a matter of choice but of necessity<\/span><\/span><span data-path-to-node=\"12,12\">. <\/span><span data-path-to-node=\"12,14\"><span class=\"citation-296\">Palm oil dominates because of its cost advantage and versatility, forming the quiet backbone of Pakistan&#8217;s kitchens, food processing industries, and consumer goods supply chains<\/span><\/span><span data-path-to-node=\"12,16\">.<\/span><\/p>\n<p data-path-to-node=\"13\"><span data-path-to-node=\"13,0\">But reliance is growing. <\/span><span data-path-to-node=\"13,2\"><span class=\"citation-295\">Total edible oil consumption is forecast to reach 5.13 million tonnes in 2025\/26 up 5 percent from 2024\/25 (USDA, 2025)<\/span><\/span><span data-path-to-node=\"13,4\">. <\/span><span data-path-to-node=\"13,6\"><span class=\"citation-294\">With per capita use at about 22 kilograms annually, the pressures of population growth, shifting diets, and an expanding food service industry will continue to drive demand<\/span><\/span><span data-path-to-node=\"13,8\">. <\/span><span data-path-to-node=\"13,10\"><span class=\"citation-293\">Pakistan cannot meet this need on its own, making imports the lifeline of its edible oil economy and raising an urgent question: how can it secure stable, affordable supplies of a commodity that shapes both family budgets and national inflation? <\/span><\/span><\/p>\n<h3 data-path-to-node=\"14\">Understanding Pakistan&#8217;s Edible Oil Landscape<\/h3>\n<p data-path-to-node=\"15\"><span data-path-to-node=\"15,1\"><span class=\"citation-292\">The first step in answering this question is to understand the structural imbalance<\/span><\/span><span data-path-to-node=\"15,3\">. <\/span><span data-path-to-node=\"15,5\"><span class=\"citation-291\">Pakistan&#8217;s edible oil market is defined by demand growth outpacing domestic supply<\/span><\/span><span data-path-to-node=\"15,7\">. <\/span><span data-path-to-node=\"15,9\"><span class=\"citation-290\">Local cultivation contributes less than one-fifth of national needs, and despite government programs and pilot projects, output has remained stagnant at roughly half a million tonnes annually (Pakistan Economic Survey, 2024)<\/span><\/span><span data-path-to-node=\"15,11\">. <\/span><span data-path-to-node=\"15,13\"><span class=\"citation-289\">Structural barriers, from water scarcity to fragmented farms and low-yield seed varieties, limit the scope for rapid expansion<\/span><\/span><span data-path-to-node=\"15,15\">.<\/span><\/p>\n<p data-path-to-node=\"16\"><span data-path-to-node=\"16,0\">Imports, therefore, are inevitable. <\/span><span data-path-to-node=\"16,2\"><span class=\"citation-288\">Palm oil fills this gap decisively because of its consistent affordability<\/span><\/span><span data-path-to-node=\"16,4\">. <\/span><span data-path-to-node=\"16,6\"><span class=\"citation-287\">In FY25, Pakistan imported 3.21 million tonnes of palm oil worth USD 3.4 billion, cementing its role as the cornerstone of national consumption (Profit, 2025)<\/span><\/span><span data-path-to-node=\"16,8\">. <\/span><span data-path-to-node=\"16,10\"><span class=\"citation-286\">Other oils, including soybean, sunflower, olive, and corn, remain marginal, either too expensive for most households or too limited in volume to matter<\/span><\/span><span data-path-to-node=\"16,12\">.<\/span><\/p>\n<p data-path-to-node=\"17\"><span data-path-to-node=\"17,0\">This reliance comes at a macroeconomic cost. <\/span><span data-path-to-node=\"17,2\"><span class=\"citation-285\">Pakistan&#8217;s total food import bill reached USD 8.14 billion in FY25, with palm oil alone contributing more than 40 percent of that amount (Profit, 2025)<\/span><\/span><span data-path-to-node=\"17,4\">. <\/span><span data-path-to-node=\"17,6\"><span class=\"citation-284\">In a country where foreign exchange reserves remain under strain, this dependency exposes the economy to global price shocks<\/span><\/span><span data-path-to-node=\"17,8\">. <\/span><span data-path-to-node=\"17,10\"><span class=\"citation-283\">And this is where the challenge moves beyond trade flows to something every Pakistani feels daily: inflation<\/span><\/span><span data-path-to-node=\"17,12\">.<\/span><\/p>\n<p data-path-to-node=\"19\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-30817\" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/Pakistan_Edible_Oil_Dependenec-at-a-Glance_.jpg?resize=1026%2C542&#038;ssl=1\" alt=\"\" width=\"1026\" height=\"542\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/Pakistan_Edible_Oil_Dependenec-at-a-Glance_.jpg?w=1026&amp;ssl=1 1026w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/Pakistan_Edible_Oil_Dependenec-at-a-Glance_.jpg?resize=300%2C158&amp;ssl=1 300w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/Pakistan_Edible_Oil_Dependenec-at-a-Glance_.jpg?resize=1024%2C541&amp;ssl=1 1024w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/Pakistan_Edible_Oil_Dependenec-at-a-Glance_.jpg?resize=768%2C406&amp;ssl=1 768w\" sizes=\"auto, (max-width: 1026px) 100vw, 1026px\" \/><\/p>\n<h3 data-path-to-node=\"25\">Experiencing Inflation Pressures and Price Stickiness<\/h3>\n<p data-path-to-node=\"26\"><span data-path-to-node=\"26,1\"><span class=\"citation-277\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-30818 \" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/flour-price_gapki.id_.jpg?resize=233%2C350&#038;ssl=1\" alt=\"\" width=\"233\" height=\"350\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/flour-price_gapki.id_.jpg?w=315&amp;ssl=1 315w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/flour-price_gapki.id_.jpg?resize=200%2C300&amp;ssl=1 200w\" sizes=\"auto, (max-width: 233px) 100vw, 233px\" \/>The burden of imports is not just measured in dollars<\/span><\/span><span data-path-to-node=\"26,3\">. <\/span><span data-path-to-node=\"26,5\"><span class=\"citation-276\">It is visible in the way global price movements ripple through domestic markets<\/span><\/span><span data-path-to-node=\"26,7\">. <\/span><span data-path-to-node=\"26,9\"><span class=\"citation-275\">When international palm oil prices spiked in late 2024, cooking oil prices in Pakistan rose almost immediately<\/span><\/span><span data-path-to-node=\"26,11\">. <\/span><span data-path-to-node=\"26,13\"><span class=\"citation-274\">But when global prices softened in early 2025, relief was slow to arrive<\/span><\/span><span data-path-to-node=\"26,15\">. <\/span><span data-path-to-node=\"26,17\"><span class=\"citation-273\">By March, the average retail price of edible oil in Pakistan was still USD 2.06\/kg (USDA, 2025), underscoring a persistent disconnect between global affordability and local accessibility<\/span><\/span><span data-path-to-node=\"26,19\">.<\/span><\/p>\n<p data-path-to-node=\"27\"><span data-path-to-node=\"27,0\">This stickiness reflects inefficiencies in Pakistan&#8217;s system. <\/span><span data-path-to-node=\"27,2\"><span class=\"citation-272\">Tariffs and duties add layers of cost<\/span><\/span><span data-path-to-node=\"27,4\">. <\/span><span data-path-to-node=\"27,6\"><span class=\"citation-271\">Limited refining and bonded storage capacity prevent imports from being buffered against shocks<\/span><\/span><span data-path-to-node=\"27,8\">. <\/span><span data-path-to-node=\"27,10\"><span class=\"citation-270\">Long, intermediated supply chains dilute benefits before they reach consumers<\/span><\/span><span data-path-to-node=\"27,12\">. <\/span><span data-path-to-node=\"27,14\"><span class=\"citation-269\">As a result, global price declines do not translate quickly into relief at home<\/span><\/span><span data-path-to-node=\"27,16\">.<\/span><\/p>\n<p data-path-to-node=\"28\"><span data-path-to-node=\"28,0\">The broader data confirm the challenge. <\/span><span data-path-to-node=\"28,2\"><span class=\"citation-268\">Overall inflation stood at 3.46 percent year-on-year in May 2025, while food and non-alcoholic beverages rose by 3.07 percent in the same period (PBS, 2025)<\/span><\/span><span data-path-to-node=\"28,4\">. <\/span><span data-path-to-node=\"28,6\"><span class=\"citation-267\">Over July-May FY25, average inflation was 4.61 percent, highlighting persistent pressures<\/span><\/span><span data-path-to-node=\"28,8\">. <\/span><span data-path-to-node=\"28,10\"><span class=\"citation-266\">Looking ahead, forecasts suggest inflation could climb back toward 5.1 percent by September 2025, largely on account of food costs (Arab News, 2025)<\/span><\/span><span data-path-to-node=\"28,12\">. <\/span><span data-path-to-node=\"28,14\"><span class=\"citation-265\">For households, this means squeezed grocery budgets; for industries, rising input costs; and for policymakers, constant pressure to keep food inflation under control <\/span><\/span><span data-path-to-node=\"28,16\">.<\/span><\/p>\n<h3 data-path-to-node=\"30\">Positioning Indonesia as a Strategic Partner<\/h3>\n<p data-path-to-node=\"31\"><span data-path-to-node=\"31,0\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-30819 \" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/positioning_gapki.id_partner_.jpg?resize=486%2C305&#038;ssl=1\" alt=\"\" width=\"486\" height=\"305\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/positioning_gapki.id_partner_.jpg?w=558&amp;ssl=1 558w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/positioning_gapki.id_partner_.jpg?resize=300%2C189&amp;ssl=1 300w\" sizes=\"auto, (max-width: 486px) 100vw, 486px\" \/>Palm oil, therefore, is not simply an import commodity. <\/span><span data-path-to-node=\"31,2\"><span class=\"citation-264\">It is a determinant of inflationary stability<\/span><\/span><span data-path-to-node=\"31,4\">. <\/span><span data-path-to-node=\"31,6\"><span class=\"citation-263\">Ensuring reliable and affordable flows is critical to protecting consumers and maintaining economic balance<\/span><\/span><span data-path-to-node=\"31,8\">. <\/span><span data-path-to-node=\"31,10\"><span class=\"citation-262\">The question then is: who can Pakistan rely on to provide that stability? <\/span><\/span><\/p>\n<p data-path-to-node=\"32\"><span data-path-to-node=\"32,1\"><span class=\"citation-261\">Stability in Pakistan&#8217;s edible oil market depends on stability of supply, and here, Indonesia plays the decisive role<\/span><\/span><span data-path-to-node=\"32,3\">. <\/span><span data-path-to-node=\"32,5\"><span class=\"citation-260\">As the world&#8217;s largest producer, responsible for about 58 percent of global output (USDA FAS, 2025), Indonesia already anchors Pakistan&#8217;s palm oil imports<\/span><\/span><span data-path-to-node=\"32,7\">. <\/span><span data-path-to-node=\"32,9\"><span class=\"citation-259\">Its strength lies not only in scale but also in flexibility and proximity<\/span><\/span><span data-path-to-node=\"32,11\">. <\/span><span data-path-to-node=\"32,13\"><span class=\"citation-258\">With around 46 million tonnes of crude palm oil production annually (USDA, 2025), Indonesia has the ability to tailor exports to Pakistan&#8217;s needs, supplying crude palm oil for local refining or refined products for faster delivery <\/span><\/span><span data-path-to-node=\"32,15\">.<\/span><\/p>\n<p data-path-to-node=\"33\"><span data-path-to-node=\"33,1\"><span class=\"citation-257\">Its geographic closeness ensures shorter shipping routes to Karachi and Port Qasim, lowering freight costs and ensuring timeliness<\/span><\/span><span data-path-to-node=\"33,3\">. <\/span><span data-path-to-node=\"33,5\"><span class=\"citation-256\">Equally important has been Indonesia&#8217;s reliability during periods of global volatility<\/span><\/span><span data-path-to-node=\"33,7\">. <\/span><span data-path-to-node=\"33,9\"><span class=\"citation-255\">Consistent flows from Jakarta have allowed Pakistan to avoid deeper shortages and sharper price spikes in turbulent years<\/span><\/span><span data-path-to-node=\"33,11\">. <\/span><span data-path-to-node=\"33,13\"><span class=\"citation-254\">This track record positions Indonesia not just as a supplier but as a trusted partner<\/span><\/span><span data-path-to-node=\"33,15\">. <\/span><span data-path-to-node=\"33,17\"><span class=\"citation-253\">The opportunity now is to deepen this relationship by moving beyond transactional trade and building a strategic partnership grounded in cooperation<\/span><\/span><span data-path-to-node=\"33,19\">.<\/span><\/p>\n<h3 data-path-to-node=\"34\">Strengthening Palm Oil as Pakistan&#8217;s Inflation Buffer<\/h3>\n<p data-path-to-node=\"35\"><span data-path-to-node=\"35,0\">Palm oil already plays this stabilizing role. <\/span><span data-path-to-node=\"35,2\"><span class=\"citation-252\">Compared to other edible oils, it delivers a 10 to 15 percent cost advantage (USDA, 2025), cushioning household budgets and containing Pakistan&#8217;s food import bill<\/span><\/span><span data-path-to-node=\"35,4\">. <\/span><span data-path-to-node=\"35,6\"><span class=\"citation-251\">Without palm oil, both consumer prices and national spending on edible oils would be significantly higher<\/span><\/span><span data-path-to-node=\"35,8\">.<\/span><\/p>\n<p data-path-to-node=\"36\"><span data-path-to-node=\"36,0\">But the benefit is blunted by inefficiencies at home. <\/span><span data-path-to-node=\"36,2\"><span class=\"citation-250\">As earlier sections showed, retail prices in early 2025 stayed high despite falling global markets, reflecting bottlenecks in refining, storage, and distribution<\/span><\/span><span data-path-to-node=\"36,4\">. <\/span><span data-path-to-node=\"36,6\"><span class=\"citation-249\">This is where Indonesia&#8217;s role can extend beyond supply<\/span><\/span><span data-path-to-node=\"36,8\">.<\/span><\/p>\n<ul data-path-to-node=\"37\">\n<li>\n<p data-path-to-node=\"37,0,0\"><span style=\"font-size: 18px;\"><strong><span class=\"citation-248\">Direct supply contracts between Indonesian exporters and Pakistani refiners would reduce reliance on volatile spot markets<\/span>.<\/strong><\/span><\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"37,1,0\"><span style=\"font-size: 18px;\"><strong><span class=\"citation-247\">Joint investments in refining and bonded storage at Karachi and Port Qasim would create buffers against global shocks and speed up the transmission of price relief to consumers<\/span>.<\/strong><\/span><\/p>\n<\/li>\n<\/ul>\n<p data-path-to-node=\"38\"><span data-path-to-node=\"38,1\"><span class=\"citation-246\">In short, palm oil already acts as Pakistan&#8217;s inflation buffer<\/span><\/span><span data-path-to-node=\"38,3\">. <\/span><span data-path-to-node=\"38,5\"><span class=\"citation-245\">With deeper cooperation, Indonesia can make that buffer more effective and resilient<\/span><\/span><span data-path-to-node=\"38,7\">.<\/span><\/p>\n<h3 data-path-to-node=\"39\">Embracing Sustainability to Future-Proof the Partnership<\/h3>\n<p data-path-to-node=\"40\"><span data-path-to-node=\"40,1\"><span class=\"citation-244\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-30820 \" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/palmoil_pohon_tree_gapki.id_.jpg?resize=454%2C297&#038;ssl=1\" alt=\"\" width=\"454\" height=\"297\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/palmoil_pohon_tree_gapki.id_.jpg?w=527&amp;ssl=1 527w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/palmoil_pohon_tree_gapki.id_.jpg?resize=300%2C196&amp;ssl=1 300w\" sizes=\"auto, (max-width: 454px) 100vw, 454px\" \/>While affordability and stability dominate today&#8217;s debate, tomorrow&#8217;s markets will be shaped by sustainability<\/span><\/span><span data-path-to-node=\"40,3\">. <\/span><span data-path-to-node=\"40,5\"><span class=\"citation-243\">Global buyers are demanding traceability and certified sourcing, and Pakistan&#8217;s food processors and exporters cannot afford to lag behind<\/span><\/span><span data-path-to-node=\"40,7\">. <\/span><span data-path-to-node=\"40,9\"><span class=\"citation-242\">Access to certified sustainable palm oil is becoming a precondition for entry into value chains<\/span><\/span><span data-path-to-node=\"40,11\">.<\/span><\/p>\n<p data-path-to-node=\"41\"><span data-path-to-node=\"41,0\">Indonesia leads on this front. <\/span><span data-path-to-node=\"41,2\"><span class=\"citation-241\">Its Indonesian Sustainable Palm Oil (ISPO) standard and participation in the Roundtable on Sustainable Palm Oil (RSPO) provide frameworks for compliance, traceability, and smallholder inclusion <\/span><\/span><span data-path-to-node=\"41,4\">. <\/span><span data-path-to-node=\"41,6\"><span class=\"citation-240\">For Pakistan, sourcing ISPO-certified palm oil ensures continuity of domestic supply while strengthening the export competitiveness of industries such as confectionery and processed foods<\/span><\/span><span data-path-to-node=\"41,8\">. <\/span><span data-path-to-node=\"41,10\"><span class=\"citation-239\">By treating sustainability as a value-added opportunity rather than a burden, Pakistan can secure its edible oil needs today while preparing its industries for tomorrow&#8217;s trade landscape<\/span><\/span><span data-path-to-node=\"41,12\">. <\/span><span data-path-to-node=\"41,14\"><span class=\"citation-238\">In doing so, it lays the groundwork for a deeper, future-proof partnership with Indonesia<\/span><\/span><span data-path-to-node=\"41,16\">.<\/span><\/p>\n<h3 data-path-to-node=\"43\">Unlocking Opportunities for Deeper Collaboration<\/h3>\n<p data-path-to-node=\"44\"><span data-path-to-node=\"44,1\"><span class=\"citation-237\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-30821  alignright\" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/unlocking_opportunities_for_deeper_.jpg?resize=292%2C200&#038;ssl=1\" alt=\"\" width=\"292\" height=\"200\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/unlocking_opportunities_for_deeper_.jpg?w=322&amp;ssl=1 322w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/unlocking_opportunities_for_deeper_.jpg?resize=300%2C205&amp;ssl=1 300w\" sizes=\"auto, (max-width: 292px) 100vw, 292px\" \/><span style=\"font-size: 22px;\">Palm oil has already proven its importance in ensuring affordability and stability<\/span><\/span><\/span><span style=\"font-size: 22px;\">. <span class=\"citation-236\">The next step is to translate this reliance into a long-term strategic partnership<\/span>. For Indonesia, Pakistan is a fast-growing, dependable market. <span class=\"citation-235\">For Pakistan, Indonesia offers scale, capital, and expertise that can address its structural bottlenecks<\/span>.<\/span><\/p>\n<h3 data-path-to-node=\"45\"><span data-path-to-node=\"45,1\"><span class=\"citation-234\">Key opportunities include:<\/span><\/span><\/h3>\n<p data-path-to-node=\"45\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-30822\" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/supply_afreements_gapki.id_.jpg?resize=897%2C401&#038;ssl=1\" alt=\"\" width=\"897\" height=\"401\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/supply_afreements_gapki.id_.jpg?w=897&amp;ssl=1 897w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/supply_afreements_gapki.id_.jpg?resize=300%2C134&amp;ssl=1 300w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/supply_afreements_gapki.id_.jpg?resize=768%2C343&amp;ssl=1 768w\" sizes=\"auto, (max-width: 897px) 100vw, 897px\" \/><\/p>\n<p data-path-to-node=\"47\"><span data-path-to-node=\"47,1\"><span class=\"citation-229\">Taken together, these steps would elevate palm oil from a commodity transaction to a platform for industrial cooperation, agricultural diversification, and long-term resilience<\/span><\/span><span data-path-to-node=\"47,3\">.<\/span><\/p>\n<h3 data-path-to-node=\"48\">Setting Policy Pathways for Pakistan<\/h3>\n<p data-path-to-node=\"49\"><span data-path-to-node=\"49,1\"><span class=\"citation-228\">To seize these opportunities, Pakistan needs policies that turn intent into action: <\/span><\/span><\/p>\n<ul data-path-to-node=\"50\">\n<li>\n<p data-path-to-node=\"50,0,0\"><span data-path-to-node=\"50,0,0,1\"><span class=\"citation-227\">Securing long-term contracts with Indonesian suppliers for predictable pricing<\/span><\/span><span data-path-to-node=\"50,0,0,3\">.<\/span><\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"50,1,0\"><span data-path-to-node=\"50,1,0,1\"><span class=\"citation-226\">Offering tariff incentives for ISPO-certified imports, aligning with global standards and giving local exporters a competitive edge<\/span><\/span><span data-path-to-node=\"50,1,0,3\">.<\/span><\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"50,2,0\"><span data-path-to-node=\"50,2,0,1\"><span class=\"citation-225\">Establishing a Pakistan-Indonesia Palm Oil Working Group to resolve tariff, logistics, and certification issues<\/span><\/span><span data-path-to-node=\"50,2,0,3\">.<\/span><\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"50,3,0\"><span data-path-to-node=\"50,3,0,1\"><span class=\"citation-224\">Promoting joint ventures in refining and storage to modernize domestic infrastructure and create efficiencies that pass through to consumers<\/span><\/span><span data-path-to-node=\"50,3,0,3\">.<\/span><\/p>\n<\/li>\n<\/ul>\n<p data-path-to-node=\"51\"><span data-path-to-node=\"51,1\"><span class=\"citation-223\">These measures would reposition palm oil from a short-term import necessity to a strategic pillar of Pakistan&#8217;s food security, industrial growth, and economic stability<\/span><\/span><span data-path-to-node=\"51,3\">.<\/span><\/p>\n<h3 data-path-to-node=\"53\">Positioning Palm Oil as a Strategic Asset<\/h3>\n<p data-path-to-node=\"54\"><span data-path-to-node=\"54,1\"><span class=\"citation-222\">For Pakistan, the question is no longer whether to import palm oil, but whether to treat it as a routine commodity or elevate it as a strategic sector<\/span><\/span><span data-path-to-node=\"54,3\">. The former path leaves the country exposed to volatility. <\/span><span data-path-to-node=\"54,5\"><span class=\"citation-221\">The latter offers a chance to stabilize inflation, attract investment, and align with future trade norms<\/span><\/span><span data-path-to-node=\"54,7\">.<\/span><\/p>\n<p data-path-to-node=\"55\"><span data-path-to-node=\"55,1\"><span class=\"citation-220\">For Indonesia, deepening this partnership secures a long-term market and demonstrates how palm oil can anchor regional food security<\/span><\/span><span data-path-to-node=\"55,3\">. <\/span><span data-path-to-node=\"55,5\"><span class=\"citation-219\">For Pakistan, it is an opportunity to convert dependence into strength<\/span><\/span><span data-path-to-node=\"55,7\">.<\/span><\/p>\n<p data-path-to-node=\"56\"><span data-path-to-node=\"56,1\"><span class=\"citation-218\">In a world of volatile prices and shifting trade rules, building this partnership is more than an economic option<\/span><\/span><span data-path-to-node=\"56,3\">. <\/span><span data-path-to-node=\"56,5\"><span class=\"citation-217\">It is a hedge against instability, a platform for industrial cooperation, and a pathway to shaping the future of food security in South Asia<\/span><\/span><span data-path-to-node=\"56,7\">. (*)<\/span><\/p>\n<p data-path-to-node=\"56\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-30823\" src=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/palmoil_cpo_gapki.id_.jpg?resize=1046%2C496&#038;ssl=1\" alt=\"\" width=\"1046\" height=\"496\" srcset=\"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/palmoil_cpo_gapki.id_.jpg?w=1046&amp;ssl=1 1046w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/palmoil_cpo_gapki.id_.jpg?resize=300%2C142&amp;ssl=1 300w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/palmoil_cpo_gapki.id_.jpg?resize=1024%2C486&amp;ssl=1 1024w, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2025\/11\/palmoil_cpo_gapki.id_.jpg?resize=768%2C364&amp;ssl=1 768w\" sizes=\"auto, (max-width: 1046px) 100vw, 1046px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SUSTAINABLE INDONESIAN PALM OIL INDUSTRY &#8211; Policy Brief Introduction In Pakistan, edible oil is not just another grocery item. It is the invisible thread that binds together the country&#8217;s food economy. Every roti brushed with ghee, every samosa fried at a roadside stall, every packet of biscuits on a supermarket shelf, and even the soap&hellip;&nbsp;<a href=\"https:\/\/gapki.id\/en\/news\/2025\/11\/20\/indonesian-palm-oil-strengthening-trade-relations-and-ensuring-price-stability-in-pakistans-market\/\" class=\"\" rel=\"bookmark\"><span class=\"screen-reader-text\">Indonesian Palm Oil: Strengthening Trade Relations and Ensuring Price Stability in Pakistan\u2019s Market<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":30815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3722],"tags":[],"class_list":["post-30814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipoa-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Indonesian Palm Oil: Strengthening Trade Relations and Ensuring Price Stability in Pakistan\u2019s Market - Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI)<\/title>\n<meta name=\"description\" content=\"In a world of volatile prices and shifting trade rules, building this partnership is more than an economic option. 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