INDONESIA’S TRADE DIPLOMACY STRATEGY TOWARDS EGYPT: INTENSIFYING ITS PALM OIL EXPORT FROM 2015 – 2019

Abstract

From 2008 until 2014 period, Indonesia’s destination market for palm oil export is unlikely to change, which was dominated by India, the European Union, China, Singapore, and Malaysia. The high number of palm oil export to the main market or traditional market makes the Indonesian palm oil export market controlled by traditional markets and easily fluctuated. To reduce dependence on Indonesia's palm oil exports in these main export markets. In 2015 - 2019, the government established a policy of diversifying export markets to prospective markets or non-traditional markets, one of which is the Egyptian market in Africa continent. Where in the period 2008 - 2014, Indonesia's palm oil exports to Africa have increased from year to year. Egypt is prospective markets with a high demand for palm oil, strategic geographical location of strategies and open market policies. This research practices qualitative analysis with the theoretical concept of trade diplomacy to analyze what is being done in diversifying export market to non- traditional market. This study found that as the effort to penetrate Egyptian market though trade mission, besides that, Indonesian Embassy activities, treaty and agreement, head of state official visit, and the utilization of Trade Expo Indonesia also can be used as the approach to increase palm oil export, and improve trade relations between Indonesia and Egypt.