Client: 2020 – Bappenas
The Indonesian Government has emphasized the importance of economic diplomacy in its national planning documents. Although the term “economic diplomacy” has been used in national planning documents, the elaboration of the definition, scope, and strategy of economic diplomacy in Indonesia is still limited.
Svara Institute (formerly Presisi Indonesia) was appointed by the Directorate of Trade, Investment, and International Economic Cooperation of the Ministry of National Development Planning (Badan Perencanaan Pembangunan Nasional/Bappenas) to carry out studies on strategic to strengthen Indonesia's economic diplomacy. The study aims to map the economic diplomacy currently in Indonesia, identify the challenges faced in implementing economic diplomacy and provide strategic recommendations for strengthening Indonesia's economic diplomacy. In addition, this study will also look specifically at the implementation of market intelligence in Indonesia. Product Regulatory Surveillance Regime in Indonesia including the links and complementary activities to border activity.
The study was conducted through literature studies and focus group discussion (FGDs). The literature study was focused on examining documents related to economic diplomacy published by the Government including the RPJMN, strategic plans of related ministries, and previous studies on economic diplomacy both in Indonesia and in other countries. We conducted a series of FGDs to discuss the result with related institutions.
Our findings indicate that the economic diplomacy described in the strategic planning document is still associated with economic diplomacy in a narrow sense which emphasizes the promotion of trade, tourism, and investment. Indonesia does not yet have a strategic economic diplomacy plan which led to lack of understanding and coordination among stakeholders of economic diplomacy in Indonesia either.
The study results offered several recommendations which include among others: (1) formulating model of Indonesian economic diplomacy; (2) implementing soft diplomacy in the context of market opening and export promotion; and, (3) intensifying the market access and export promotion.