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The strategic value of establishing extension offices for Indonesian diplomacy: A case study of Indonesian extension office in Tbilisi, Georgia
Strengthening economic diplomacy is one of the priorities of Indonesian Foreign Policy of 2019-2024. In this regard, Indonesia will focus on strengthening its traditional markets and entering new markets in Africa, Latin America, Central Asia, South Asia, the Middle East and the Pacific for goods and services, investment and infrastructure development.
One of the often overlooked but most potential regions for new market is Central and Eastern European. In spite of the ongoing Covid-19 pandemic, total trade value between Indonesia and the 20 countries in the region reached USD 4.31 billion in the period of January – July 2021, an increase of 25.57% compared to the same period the year before.
Among the Central and Eastern European countries, Georgia showed the most potential with a huge increase in bilateral trade with Indonesia, jumping from USD 50 million in 2020 to USD 274 million in 2021. It is also one of the most business-friendly countries in the world, based on several indicators formulated by reputable organizations. This presented an opportunity for Indonesia to tap into its potential by establishing an extension office in Tbilisi, a bold an unprecedented move to accelerate the strengthening of bilateral relations with the country.
In light of this development, the paper offers its analysis on the impact of the extension office in Tbilisi and its strategic value for Indonesian diplomacy. The assessment is also followed by some future scenarios going forward, especially in situations where budget is limited. The recommendations from these scenarios could be utilized to determine the possibility of opening more extension offices in other countries, based on selected criteria.
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