Motif Indonesia dalam Perjanjian Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement
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This article examines the motives behind Indonesia’s decision to establish an economic cooperation agreement with the United Arab Emirates through IUAE-CEPA. This agreement deviates from Indonesia’s usual approach of partnering with larger economies or geographically closer nations that typically result in trade surpluses. Trade data from 2017 to 2022 indicates an unfavorable trend for Indonesia, characterized by deficits and low trade volumes. The study applies the cross-regional trade agreement partner selection theory and employs a qualitative approach through document analysis. It finds that Indonesia’s motivations for IUAE-CEPA extend beyond economic considerations, encompassing political strategy and diplomatic leverage. Indonesia’s engagement with the UAE reflects these dynamics, as the agreement is not solely driven by trade expansion but also by Indonesia’s broader strategic objective of establishing itself as a credible trade partner in the Middle East. Furthermore, the negotiation process underscores Indonesia’s political ambitions, positioning IUAE-CEPA as a steppingstone toward deeper economic integration and cooperation within the Gulf region.
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