Indonesia Establishes New Directorate General to Strengthen Economic Diplomacy
Jakarta, The Gulf Observer: Indonesia’s Ministry of Foreign Affairs has established the Directorate General of Economic Relations and Development Cooperation to enhance its economic diplomacy and align its foreign policy more effectively.
Speaking during his annual press statement on Friday, Foreign Affairs Minister Sugiono highlighted that under President Prabowo Subianto’s leadership, economic diplomacy will aim to create a more equitable global economic framework, amplifying the voices and interests of developing nations.
He emphasized Indonesia’s current macroeconomic stability, noting positive evaluations from the Organisation for Economic Co-operation and Development (OECD) and the World Bank, which underscore Indonesia’s resilience amid global uncertainties.
“Domestic economic stability will provide a solid foundation for development and serve as Indonesia’s strong capital to actively contribute toward global peace and prosperity,” Sugiono said.
President Prabowo’s vision to achieve an economic growth rate of up to eight percent and prepare Indonesia for developed-nation status was described by Sugiono as a shared commitment rather than an ambition. Key goals include sovereignty, resilience, and national food and energy self-sufficiency, along with accelerating the green energy transition and the development of the blue economy.
The focus of economic diplomacy will also include strengthening the digital and creative economy, promoting the downstreaming of commodities, and fostering mutually beneficial partnerships. Indonesia will prioritize fair trade, market expansion for domestic products, and attract investments that align with national priorities.
In non-traditional markets such as Africa, the Caribbean, and the Pacific, Indonesia aims to deepen strategic partnerships and seek new investment opportunities. Additionally, the government remains committed to finalizing ongoing international trade agreements to ease trade tensions and protect business actors, including micro, small, and medium enterprises (MSMEs).
Sugiono emphasized Indonesia’s proactive approach to countering unfair economic practices that impact its leading commodities. The newly established directorate general will also focus on development assistance as a soft power diplomacy tool. Activities such as providing scholarships, capacity-building programs for officials of neighboring nations, and expanding aid to the Global South, including Africa, the Middle East, Asia-Pacific, and Latin America, will elevate Indonesia’s global influence.
