Indonesia will import 1 million metric tonnes of milled rice over the next four years from Pakistan.
The two governments, represented by Indonesia’s Trade Minister Thomas Trikasih Lembong and Pakistan’s Ambassador to Indonesia Mohammad Aqil Nadeem, signed a memorandum of understanding, an Indonesian news outlet reported on Thursday.
The deal, with an estimated worth of $400 million in imports between 2016 and 2019, will be executed by Indonesia’s procurement agency, Bulog, and Trading Corporation of Pakistan.
The import of rice will help Indonesian government’s efforts to replenish the rice stocks in view of current rice shortage due to severe drought.
Pakistan is the world 11th largest rice producer with annual production of 6.9 million tonnes of milled rice.
Bilateral trade has exceeded $2.2 billion since its start in 2014.
Pakistan and Indonesia concluded Preferential Trade Agreement in 2013 under which Indonesian exports to Pakistan increased manifold especially in crude palm oil.