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Strategic response to emerging sustainability trade measures: Safeguarding Indonesia and ASEAN commodity competitiveness
This policy brief proposes repositioning Indonesia's economic diplomacy as a system-enabling instrument to respond to emerging global sustainability trade measures, including tightening environmental standards and supply-chain requirements. The commodity sector faces a growing misalignment between domestic production systems and global market demands, risking competitiveness erosion and marginalization of smallholder farmers. The paper introduces the Indonesia Sustainable Commodity Acceleration Partnership (ISCAP+) as a flagship Ministry of Foreign Affairs initiative that integrates international demand signals, blended finance instruments, and domestic supply chains through pilot-based Green Commodity Corridors. The analytical framework draws on systems thinking, design thinking, SCAMPER-driven innovation, and a Desirability-Feasibility-Viability (DFV) lens to generate practical, high-impact interventions that are scalable over time. This approach positions ASEAN as central to aligning standards, expanding intra-regional trade, and strengthening Southeast Asia's role in governing global sustainable commodity markets, with the ultimate goal of repositioning Indonesia from a commodity supplier to a system orchestrator of sustainable, inclusive, and competitive value chains.
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