This thesis project is a comprehensive study based on assessing the strengths and interests of the Republics of Indonesia and Panama in order to find a common ground from which both nations can enhance their bilateral relation through economic diplomacy by collaborating in the sector of trade by securing national interest, mentioned in Chapter IV. In our study we will focus in trade of goods, which is of upmost importance to Indonesia’s Economic view on the Global Maritime Fulcrum Vision and Panama’s Center of Logistics. The bilateral relation between both nations was one that started more than 40 years prior to this writing. Only 3 years prior to this writing both nations have started to maintain a closer line of communication with seemingly more interest on collaborating with each other. This thesis project suggests that both countries can play an even bigger role in world trade by collaborating with assets that both countries already possess, whereas the possibility of a bilateral trade agreement might not be entirely necessary; it is to also to be analyzed how the growth of the bilateral relation could move forward and how a possible Trade Agreement could impact the previous work between both countries. With both countries using implementing policies and initiatives that look for promoting trade, economic growth and engagement with each other’s region. Closer relations between the Republics of Indonesia and Panama seems to become a very likely scenario in the years to come, due to their interests, plans for the future and current capabilities.

Key Words: Trade, Economic Diplomacy, Bilateral Relations, Indonesia, Panama.