Indonesia will import 1 million metric tons of milled rice over the next four years from Pakistan, in a move to shield the country’s food security against volatile weather patterns.
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 on Tuesday.
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 Pakistan’s Trading Corporation of Pakistan.
Indonesia currently has similar MoU with Cambodia, Myanmar, Thailand and Vietnam, though only some of the deals have been realized.
Pakistan is the world 11th largest rice producer with annual production of 6.9 million tons of milled rice.
The country saw trade with Indonesia rise 27 percent to $2.2 billion last year following a Preferential Trade Agreement in 2013.
Indonesia enjoyed $1.8 billion surplus in the trade, thanks to its palm oil exports.