COOPERATION BETWEEN INDONESIA AND PAKISTAN IN BOOSTING EXPORT PERFORMANCE OF WILMAR INTERNATIONAL’S PROCESSED PALM OIL PRODUCTS

In international relations, trade cooperation is a strategic step for every country to improve the welfare of its people. As a country which rich in natural resources, Indonesia continues to utilize its potential to perpetuate trade with other countries through export activities. One of Indonesia's leading commodities that is valuable in the global market is palm oil. Many countries have trusted Indonesian palm oil products, one of which is Pakistan. The step to facilitate the export process in the palm oil sector is through the Indonesia-Pakistan Preferential Trade Agreement (IPPTA). Through the IPPTA framework, the two countries agreed to reduce tariffs and expand the export-import commodities of both countries. This paper focuses on providing an understanding of the impact of IPPTA at the business to government levels, where the author uses Wilmar International as the subject of research. Using the theory of Trade Cooperations: The Purpose, Design and Effects of Preferential Trade Agreements by Malfred Esig, this study found that there were factors outside of tariffs that hampered the increase in palm oil export performance at Wilmar International, which were identified through global conditions, domestic conditions and internal conditions of the company.