Free Trade Agreement (FTA) through economic diplomacy strategy. Study of Indonesia-Japan Economic Partnership Agreement (IJEPA)

Abstract

Free trade is considered to make a positive contribution to both domestic and international economy because of the removal of trade barriers. The importance of free trade can be seen from the increasing free trade agreements between developed and developing countries. The involvement of developing countries in free trade agreements enables them to make efficiency and maximize the benefits of implementing free trade agreements. Developing countries however often do not get results that are as expected in the Free Trade Agreement (FTA). For example, Indonesia has not yet obtained the outcomes that were expected in the implementation of the Indonesia-Japan Economic Partnership Agreement (IJEPA). The results highlight that one fundamental factor for obtaining optimal benefits from a trade agreement is internal coordination prior to the negotiation process.

Keywords

• free trade agreement
• indonesia-japan economic partnership agreement
• implementation
• domestic coordination.