Strengthening Indonesia-Botswana economic relations: a partial equilibrium free trade simulation analysis

Abstract

Indonesia and Botswana have cordial friendship, but the economic relations are still below potentialities. The Indonesian government has endorsed Indonesia-SACU PTA proposal. Using TINA partial equilibrium model, the Indonesia-Botswana bilateral free trade scenario findings revealed trade creation effects, opening Indonesian export to Botswana such as tyres, wood products, papers and vehicles. Meanwhile, Botswana’s potential export to Indonesia are: diamonds, sugars, and metal keys. For the trade diversion, Botswana would import less mainly from South Africa and China, while Indonesia would import less mainly from Japan and United Kingdom. The study suggested both countries need to expedite the Indonesia-SACU PTA.

Recibido: 15-09-25 / Aprobado: 30-09-25