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The prospect of establishing a preferential trade agreement/free trade agreement between Indonesia and East African community (EAC) countries: An application of Moon Shot and Back Casting Method
This study is intended to see opportunities for Indonesia in establishing PTA/FTA cooperation with East African Community countries and to see what steps are needed for Indonesia to carry out such cooperation. These steps are arranged in chronological order so that by 2025 Indonesia will be ready to sign the PTA/FTA. In addition to focusing on identifying the necessary steps, this study also pays attention to stakeholders who need to be included in the road map for the signing of the PTA/FTA. The operationalization of the study was carried out using the Moonshot – Backcasting method to connect specified ideal future condition to the present conditions.
After conducting the MBM analysis, the author concludes that Indonesia has the opportunity and position to be able to conduct PTA/FTA cooperation with EAC countries. However, a series of policies are needed to prepare for such cooperation.
Suggested policy recommendations are the followings: Intensive media campaigns against entrepreneurs and the wider community regarding business opportunities with EAC countries; Convincing relevant Ministries/Agencies on the potential for establishing a PTA between Indonesia and EAC countries; Utilizing LPEI/Indonesia Exim Bank to finance Indonesian exports to EAC countries; Utilizing LDKPI to carry out the Tied Aid strategy; Take advantage of the annual Trade Expo Indonesia event, Organize the Indonesia Africa Forum on a regular basis.
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