THE IMPLEMENTATION OF INDONESIA ECONOMIC DIPLOMACY TO SUPPORT INDONESIA-AUSTRALIA TRADE IN GOODS (TIG) WITHIN THE FRAMEWORK OF AANZFTA (ASEAN-AUSTRALIA-NEW ZEALAND FREE TRADE AREA) 2012-2015

Abstract

Indonesia has realized that there is a need for enhancing its economic growth through international free trade. Indonesia supports free trade by initiating AANZFTA. However, specifically seeing that Indonesia and Australia as one of member country in AANZFTA, have different background in economics, infrastructure, facilities and national products, Indonesia should compete and advance domestic products to be marketed abroad. Thus, Indonesian Government using economic diplomacy as an approach. Hence, the question will be how did the implementation of Indonesia economic diplomacy to support trade relations between Indonesia and Australia in the framework AANZFTA. In this study, the writer uses descriptive-analytical method in presenting trade data and analyzing its relation to the government support through the implementation of economic diplomacy. To analyze the implementation of economic diplomacy 2012-2015, the writer uses legal document in which the Strategic Plan Ministry of Foreign Affairs and its relevant policies created by other government agencies. Indonesia economic diplomacy actions carried out by conducting exhibitions, trade events, establishment of the business community, inter-governmental working visits, cooperation with governmental agencies at home and abroad as well as the establishment of working group. Through actions coordinated by Ministry of Foreign Affairs, Indonesia could seek market opportunities, potential commodities that are going to be traded, as well as develop and strengthen network for both with government and private sectors. The implementation of economic diplomacy represents the support of Indonesian Government to Indonesia-Australia trade relations since it empowers the establishment of economic policies and cooperation with relevant agencies which enable to encourage promotional activities, facilitation, marketing, observation, and evaluation.