Trade cooperation between Indonesia and Mozambique is a strategic step in addressing shared economic challenges. As developing countries, both nations strive to diversify their markets, reduce dependence on traditional trade partners, and enhance economic resilience. The signing of the Indonesia-Mozambique Preferential Trade Agreement (IM-PTA) in 2019 is expected to boost bilateral trade through tariff reductions and improved market access. This study aims to analyze the impact of IM-PTA on economic growth, trade diversification, and investment flows between the two countries. Using a descriptive-qualitative approach, this research examines economic trends before and after the agreement, based on trade data, policy reports, and case studies. The findings indicate that IM-PTA has driven an increase in trade volume, particularly in the agriculture, energy, and manufacturing sectors. However, challenges remain in logistics infrastructure, bureaucracy, and product competitiveness, which need to be addressed to optimize the agreement's potential. This study highlights the importance of PTAs as instruments of economic diplomacy. By promoting trade diversification and reducing market barriers, IM-PTA serves as a model for bilateral trade agreements between developing countries. Further policy recommendations include infrastructure development, regulatory harmonization, and enhanced trade facilitation to ensure sustainable economic growth. Keywords: Preferential Trade Agreement, Indonesia-Mozambique, Bilateral Trade, Economic Growth