Tazeen Akhtar | ASEAN Monitoring Desk Islamabad
Pakistan Prime Minister Shabaz Sharif is scheduled to visit Jakarta, Indonesia, starting August 17, 2026, to attend the 12th Summit of the Developing-8 Organization for Economic Cooperation. During this three-day visit, he is planned to hold key bilateral meetings on the sidelines with the leaders of member states.
The D-8 Organization for Economic Cooperation (Developing-8) is a group of 9 countries—Azerbaijan, Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Türkiye—founded on June 15, 1997, in Istanbul. Its main goal is to build better economic ties, trade, and cooperation among member states.
Indonesia holds the chairmanship of the Developing Eight (D-8) Organization for Economic Cooperation for 2026-27. Although the 12th D-8 Summit in Jakarta was initially scheduled for April 15, 2026, it was postponed due to Middle East tensions.
Indonesia’s Chairmanship carries the theme “Navigating Global Shifts: Strengthening Equality, Solidarity and Cooperation for Shared Prosperity,” reflecting Indonesia’s commitment to leading D-8 in responding to global geopolitical and geo-economic dynamics through strengthened cooperation and Global South solidarity.
The key focus areas of the Summit are ;Advancing the global halal economy, expanding the blue and green economies, boosting digital connectivity and small-medium enterprises, and implementing internal organizational reforms.
Earlier at the invitation of Shehbaz Sharif, Prime Minister Pakistan, H.E. Mr. Prabowo Subianto, President of Indonesia, paid an official visit to Pakistan on 8-9 December 2025. During the visit, President Prabowo Subianto held delegation level talks with Prime Minister Shehbaz Sharif and met with H.E. Asif Ali Zardari, President of Pakistan.
The Chief of Defence Forces, Field Marshal Syed Asim Munir also called on President Prabowo Subianto. During the visit, the President of Indonesia was conferred the Nishan-e-Pakistan, Pakistan’s highest civilian honor, by the President of Pakistan.
Affirming their shared commitment to expanding trade and economic cooperation, the two sides noted that while bilateral trade has doubled since 2014 and surpassed the US$ 4 billion-mark, considerable opportunities remain unexplored. It was agreed to hold a meeting of the Joint Negotiations Committee (JNC) at the earliest to elevate the existing IP-PTA to Comprehensive Economic Partnership Agreement (CEPA) by 2027 through deeper concessions, removal of non-tariff barriers, as well as strengthening cooperation to fulfil the true potential of the bilateral agreement.
Recognizing the importance of traditional trade commodities including agricultural and industrial goods, palm oil, surgical instruments, and pharmaceutical products for the bilateral trade, it was agreed to explore opportunities to enhance cooperation in the services sector as well including information technology, cyber-security, and fintech. The importance of cooperation in the halal food industry and Islamic finance was also underscored.
Both sides also emphasized the importance of strengthening mutual investments to diversify and expand economic cooperation. They agreed to explore measures to promote investment cooperation in diverse sectors including and not limited to agriculture, IT, mining and minerals, tourism, infrastructure, digital infrastructure, connectivity and energy, including through engagement between Pakistan’s Special Investment Facilitation Council (SIFC) and Indonesia’s Sovereign Wealth Fund (Danantara).
Pakistan and Indonesia share close, resilient diplomatic relations rooted in strong historical solidarity, anti-colonial ideology, and their status as two of the world’s largest Muslim-majority populations. Formally established on April 28, 1950, the relationship recently marked its 75th anniversary with expanded bilateral commitments in trade, defense, and health.
Total bilateral trade revolves around $4.5 to $5 billion, making Indonesia one of Pakistan’s top 10 trading partners.The Indonesia-Pakistan Preferential Trade Agreement (IP-PTA), operationalized in 2013, has significantly optimized tariff structures.Recent efforts focus on rectifying the trade imbalance via Pakistan’s agricultural exports, IT-led services, and collaborative halal trade certification.
Defense & Security Cooperation
Institutional Ties: The Pakistan-Indonesia Joint Defence Cooperation Committee (JDCC) serves as the highest forum for military collaboration.
Military Collaboration: In 2026, both nations agreed to expand joint military training, defense technology, and manufacturing production.
Aviation & Naval Support: Indonesia has explored joint manufacturing opportunities for the JF-17 Thunder fighter jet and routinely participates in bilateral naval exercises spanning the Arabian Sea to the Strait of Malacca.
Counter-Terrorism: A dedicated Joint Working Group (JWG) focuses on intelligence sharing to combat international terrorism and violent extremism.
Recent MoUs & Social Cooperation (2025–2026 State Visits)
During Indonesian President Prabowo Subianto’s milestone state visit to Islamabad, wide-ranging agreements were signed:
Medical Exchange: Pakistan is deploying doctors, dentists, and medical professors to support Indonesian healthcare infrastructure and universities.
Education & Culture: Mutual recognition of higher education degrees and reciprocal scholarship grants have been instituted to foster student mobility.
Geopolitical Alignment: Both nations routinely coordinate foreign policy platforms on global issues like the Palestinian two-state solution, human rights, and countering Islamophobia.
