In 2024, both Indonesia and the Scandinavian countries are experiencing a mixture of promising opportunities and significant challenges in their economic relations. This partnership covers a wide range of aspects, including trade, investment, sustainable development, and cultural exchange. However, it is not without its obstacles. These obstacles include regulatory barriers, inadequate infrastructure, and cultural disparities.

This paper comprehensively analyzes the issues and proposes potential solutions to strengthen the economic ties between Indonesia and the Scandinavian countries. Trade between Indonesia and Denmark, Norway, Sweden, Finland, and Iceland has witnessed steady growth, especially in the export of palm oil, textiles, and electronics. However, trade imbalances and tariff barriers require attention. Indonesian exports often face higher tariffs compared to imports from the Scandinavian countries, resulting in an unfair and competitive environment. To rectify this situation, it is essential to engage in bilateral negotiations, emphasizing tariff reduction and the promotion of fair trade practices. Additionally, diversifying export products to align more effectively with the demands of the Scandinavian market can establish a more equitable trade relationship.

Investment from Scandinavian countries in Indonesia, particularly in renewable energy technology and sustainable agriculture, is increasing. However, regulatory obstacles and bureaucratic delays hinder these investments. To attract more Scandinavian investors, the investment process should be streamlined and incentives such as tax breaks and simplified regulations should be considered. By establishing a transparent and efficient regulatory environment, not only will foreign investment be encouraged, but investor confidence will also be bolstered.

The partnership between Indonesia and Scandinavian countries,........

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