Indonesian Diaspora and Economic Diplomacy: A Systematic Literature Review of Transnational Networks, Soft Power, and Development

Abstract

The growing importance of diaspora communities in international relations has increased scholarly interest in their contributions to economic diplomacy and national development. However, research on the Indonesian diaspora remains fragmented across migration studies, public diplomacy, economic diplomacy, and development studies. This study aims to systematically review the literature on the role of the Indonesian diaspora in economic diplomacy by examining the interconnections among transnational networks, soft power, economic engagement, and development outcomes. Using a Systematic Literature Review (SLR) approach based on the PRISMA 2020 framework, relevant publications were identified, screened, and synthesized from major academic databases.  The findings reveal that Indonesian diaspora communities function as strategic transnational actors whose contributions extend beyond remittances and traditional migration activities. The literature indicates that diaspora engagement operates through four interconnected dimensions: (1) transnational networks that facilitate the flow of knowledge, information, capital, and opportunities; (2) soft power generation through cultural diplomacy, education, and public diplomacy; (3) economic engagement through trade promotion, investment facilitation, entrepreneurship, and tourism development; and (4) development outcomes, including innovation diffusion, human capital development, competitiveness enhancement, and economic growth. The review also highlights the growing role of digital technologies in strengthening diaspora engagement while identifying persistent institutional and policy constraints.  The main originality of this study lies in the development of an integrated Diaspora Economic Diplomacy framework linking transnational networks, soft power, economic engagement, and development outcomes. This study contributes to the literature by providing a comprehensive interdisciplinary perspective and establishing diaspora economic diplomacy as an emerging field of inquiry.