In 2020, Indonesia introduced a digital services tax (DST) to increase state revenue by taxing multinational digital companies operating in Indonesia. However, the policy faced challenges from the United States, including potential retaliatory tariffs that could affect bilateral trade. This paper argues that the DST should be addressed through economic diplomacy, considering its broader implica…
The transportation sector is a major source of greenhouse gas emissions, making electric vehicles (EVs) a potential solution to reduce pollution and dependence on fossil fuels. As global demand for EVs increases, Indonesia has a strategic advantage due to its abundant nickel resources, which are essential for battery production. This paper examines the potential of Indonesia’s EV industry and…
Indonesia’s economic diplomacy strategy emphasizes strengthening trade, investment, and tourism through its diplomatic missions abroad. However, many Indonesian diplomats lack specialized economic expertise and adequate resources to support these activities effectively. This paper identifies key challenges faced by economic officers, including knowledge and competency gaps, insufficient guide…
Economic diplomacy is a key priority for Indonesia, and the Indonesian Embassy in Moscow has organized the annual Festival Indonesia Moscow to promote trade, tourism, and investment between Indonesia and Russia. Although the festival has increased interest in Indonesian products and attracted Russian tourists, its economic impact remains limited due to insufficient participation from small and …
The COVID-19 pandemic has highlighted the need for Indonesia’s Ministry of Foreign Affairs (MoFA) to strengthen economic diplomacy by facilitating outward investment and protecting Indonesian direct investment enterprises (DIEs) overseas. Using SWOT analysis, surveys, and interviews, this paper evaluates the need for a legal framework to improve investment facilitation, protection, monitoring…
This paper examines strategies to strengthen Indonesia’s economic diplomacy by improving diplomatic personnel capabilities and information and communication technology (ICT) infrastructure. It identifies diplomats’ economic expertise and access to reliable information as key factors in supporting economic diplomacy. The paper recommends providing pre-departure economic diplomacy training, d…
This paper examines the strategies that the Ministry of Foreign Affairs could implement to aid Indonesia’s national tourism recovery following the impact of the pandemic. The tourism sector was hit particularly hard by the pandemic, with Indonesia losing at least IDR 10 trillion in 2020. Recovery efforts were pursued by the government, including Travel Corridor Arrangements (TCAs) and pilot p…
People-to-people (P2P) diplomacy plays an important role in strengthening mutual understanding and supporting bilateral cooperation between Indonesia and Australia. Despite existing initiatives in cultural exchange, language promotion, youth programs, and academic cooperation, public misperceptions and distrust remain challenges to the effective implementation of the Indonesia-Australia Compreh…
Indonesia’s diplomatic missions abroad play an important role in promoting national tourism. However, they face challenges in accessing updated promotional materials, understanding national tourism strategies and branding, and coordinating with the Ministry of Tourism and Creative Economy and provincial governments. This paper aims to identify concrete measures for the Ministry of Foreign Aff…
Despite being the world’s largest Muslim population and the economy with the highest gross domestic product (GDP) among Muslim-majority countries, Indonesia is currently the biggest global halal food market, but nowhere among the major global halal food producers and exporters. The Indonesia Islamic Economic Masterplan (MEKSI) 2019-2024 has outlined a set of strategies to achieve the visi…