Expanding Indonesia’s Economic Market in Africa: Contributing Factors of the Indonesia - Mozambique Preferential Trade Agreement (IM-PTA) 2017-2021

Abstract

In 2017, Indonesia and Mozambique agree to cooperate within the Indonesia-Mozambique Preferential Trade Agreement (IM-PTA), which became the first milestone of tariff-based trade cooperation between the two countries. This study aims to answer the question of why Indonesia chose Mozambique as a PTA partner. Using Olivier Cattaneo's Political Economy of PTA framework, this study analyzes six factors that influenced the decision, namely country readiness, economic benefits, trade liberalization strategy, compatibility of national interests, private sector and parliamentary support, and limited government resources. The research used a descriptive qualitative method with a case study approach, based on secondary data that included policy reports and bilateral trade data. The results of the analysis show that the selection of Mozambique as an IM-PTA partner was influenced by the country's political and economic readiness, Mozambique's strategic potential as a gateway to Africa, as well as political and private sector support from both countries. Thus, the IM-PTA reflects not only bilateral economic relations, but also Indonesia's long-term strategy of diversifying trading partners and strengthening its global role through trade diplomacy.