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Formulating bilateral economic diplomacy strategy to promote small medium enterprises using Uppsala Business Internationalization Model

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The promotion of SMEs is mentioned within Kemlu’s Renstra 2020-2024 as one of the strategies to propel economic development and post-pandemic economic recovery. This is in line with the fact that SMEs absorb around 97% of employment in Indonesia, and hence helping SMEs is in conjunction with helping the livelihood of the people in general. However, it seems that promotion of SMEs is beginning to slightly fade from Kemlu’s mainstream policy. Decision makers are leaning toward promoting State Owned Companies and big private companies because they are more pragmatic. Furthermore, there was also no explicit mention of SMEs in Minister Retno’s widely celebrated annual press statement 2022, which gave us a general picture of what is going to be the strategic focuses of Indonesia’s Diplomacy.

To avoid marginalization of issues from Kemlu’s mainstream policy, in this case the SMEs, the process of policy formulation to determine working programs to be implemented should have reference to a scientific academic analysis. Alas, the lack of scientific reference, and the missing link between strategy and working programs have become auditors’ critics of Kemlu’s strategic planning document like the Annual Performance Report.

In this regard, the study attempts to propose the use of Uppsala Internationalization Model as a conceptual framework that can be employed in the formulation process of economic diplomacy strategy to promote SMEs. The Uppsala model is seen academically as the most suitable model for SMEs promotion compared to other existing models such as the network model and the born global model. To test the validity of the Uppsala Model in the context of Indonesian SMEs, I conducted a case study based on interviews with 2 correspondences. The results of the case study confirmed that the internationalization process of Indonesian SMEs follows a stage-by stage pattern of the Uppsala Model. Departing from this study, I can say that it is important for Kemlu’s policy makers to group SMEs based on their internationalization stages, because every stage will require different support programs from Kemlu. Integration of the Uppsala Model with various Kemlu’s economic diplomacy programs becomes an applicable new model that can be used for bilateral economic diplomacy strategy formulation to promote SMEs.

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Ketersediaan

2022-0018

Sesdilu 72-2022

Training Materials Repository

Tersedia

Informasi Detail

Judul Seri

-

No. Panggil

Sesdilu 72-2022

Penerbit

Jakarta : Kementerian Luar Negeri., 2022

Deskripsi Fisik

-

Bahasa

English

ISBN/ISSN

-

Klasifikasi

NONE

Tipe Isi

text

Tipe Media

computer

Tipe Pembawa

online resource

Edisi

-

Subjek

-

Info Detail Spesifik

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Pernyataan Tanggungjawab

UPT Sekolah Staf Dinas Luar Negeri

Versi lain/terkait

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