ABSTRACT
Globalisation is natural, as no country can produce its needs on its own. Cooperation and collaboration within countries in both production and trade are a must. Since the world economy does not converge by its nature, interests can be either collide or complete, yet the world needs to find its global equilibrium. There are always ups and downs to achieve a so-called win-win solution in keeping this global equilibrium stable both at the global and country-level. This article observes the impact of globalisation on Indonesia’s economy from Indonesia’s perspective and experiences. It shows Indonesia’s globalisation trends – both in trade and investment over the last four decades from the new order era until now. This observation is essential to understand how Indonesia deals with globalisation factors in the short term and brings it to the next stage of development with structural reform and transformation. This paper also shows the long-run impact of globalisation for Indonesia’s economy. It found that globalisation’s cost for Indonesia is immediate yet temporary, while its benefit is long-run and permanent.
