Ministry of Foreign Affairs and Indonesia Eximbank (LPEI) have signed a Memorandum of Understanding (MoU) on Cooperation to Improve Economic Diplomacy. The MoU was signed on the sidelines of Indonesia Africa Forum (IAF) 2018 and witnessed by Minister for Foreign Affairs Retno Marsudi and Minister for Finance Sri Mulyani (4/10).
Economic diplomacy is one of the priorities of the Ministry of Foreign Affairs, 132 Indonesian Representatives overseas are at the forefront of Indonesia’s economic diplomacy engine. In particular, the President of the Republic of Indonesia has mandated that the RI Representatives must always be active and creative in advancing the interests of the national economy in their respective accredited countries.
Nevertheless, economic diplomacy, especially nowadays, is not an easy thing. High levels of competition require diplomats to make breakthroughs and cleverly looking for the opportunities and potentials to improve access to global markets, especially in non-traditional markets.
In reality, the efforts to penetrate non-traditional market are full of challenges. Business actors and investors still have concerns over doing business with non traditional markets.
The partnership between the Ministry of Foreign Affairs and LPEI can help the Ministry to improve its relations with the business world, especially in convincing businesses to be more willing to take measurable risks, including tapping into non-traditional markets.
LPEI is an institution mandated to run national export financing. Its particular function makes it as an important partner for the Foreign Ministry, especially for RI Representatives, in maximizing economic diplomacy.
In addition, Indonesia currently has, or is in the process of negotiating, a number of trade cooperation agreements, both bilaterally and regionally. LPEI’s support will play a major role in the implementation of such cooperation.
In particular, this MoU is expected to make the communication between RI Representatives and LPEI easier, especially related to the exchange of information on the results of business intelligence which is accurate based on facts and conditions in the field. With such information, potential projects and comparative advantages of Indonesia as well as outbound investment opportunities can be identified.
The scope of cooperation set forth in the MoU includes cooperation to encourage investment and international trade; expansion of international networks; exchange of data/information related to economic issues; and capacity building of resources. (Directorate of PKKI/Infomed).