Indonesia's Economy

in the Era of
Globalization
PRELIMINARY
1. Background
Economics as a form of human endeavor to meet human needs in their daily life continues to
experience growth over time. The economy of the various parts of the world as well as from
the Indonesian state itself shows progress in this globalization era, the goal is nothing but for
the public welfare state itself. The problems experienced in Indonesia in the era of
globalization does not only involve politicians alone, but the Indonesian people themselves
played a role important in the progress of the economy in Indonesia. In addition to human
resources itself, religion, culture, natural resources, geography and ideology also participated
and became the driving force for progress and economic development in Indonesia.
In the development of the economy in Indonesia, not only involve one country, but Indonesia
still need and necessity of economic relations with other countries, in order to create a stable
economy and running properly.

2. Objectives
The purpose of a paper entitled "The Indonesian economy in the era of globalization" are:
1. To meet the task groups of subjects Indonesian Economic System
2. As a medium of learning as where to hit Indonesia in the era of globalization and the
current economy in Indonesia
3. Knowing what things that Indonesia faces in today's era of globalization
4. For a discussion of the lecture class on Indonesian economic system

DISCUSSION
1. Indonesia to face globalization
Globalization is a term that has a relationship with increased
linkages and interdependence among nations and among people around the world through:
- Trade,
- Investments,
- Travel,
- Popular culture,
- Forms of interaction to another.
So that the boundaries of a country to be biased.
In many ways, globalization has many karkateristik same with internationalization, and this
term as interchangeable. Some parties often use the term globalization is associated with a
reduced role of the state or national boundaries.
The word "globalization" is taken from the global word, whose meaning is universal.
Globalization not yet have an established definition, but a definition of work (working
definitation), so depending on which side one looks.
Others regard as a
- Social processes,
- The historical process,
- A natural process
which will bring the entire nation in the world are increasingly tied to one another, realizing a
new order of life or unity of co-existence to get rid of:
- Geographical boundaries,
- Economic
- Culture.
The characteristics that indicate berkembangnnya globalization:
a. Changes in the concept of space and time.
b. Market and economic production in different countries become interdependent
c. Increased cultural interaction through the development of mass media (especially
television, movies, music, and transmission of news and sports).
d. Increased joint problems, for example in the field of environment, kirsis multinational
regional inflansi and others.

2. Economic Globalization and Economic Indonesia

The world economy experienced a change since dasarwarsa seventy until the 2000s that are
fundamental or structural as well as having long-term trends and conjunctural. Changes and
developments is known by the term globalization.
Symptoms of globalization occurs in the following activities:
- Financial,
- Production,
- Trade investment
that would affect the relations between nations and relations between individuals in all
aspects of life.
Relations between nations become more interdependent that even makes the world economy
into one so as if the boundaries between countries in trade, business does not exist anymore.
In general, countries in the world face these developments by making adjustment measures
both in the region and individual countries that the tendency leads to proteklionisme. This is
evident by the appearance of block trading block which in essence it violates an agreement
that showcased in the WTO.
Economic globalization is characterized by the depletion of the limits of the
investment or market:
- National,
- Regional
- International.
This is caused by:
1. Communication and transportation are increasingly sophisticated,
2. Traffic exchange increasingly free,
3. The country's economy more open,
4. The use of comparative advantages and competitive advantages of each country,
5. The method of production and assembly of the organization more efficient,
6. The more rapid growth of multinational companies (MNC) in almost every corner of the
world.
Steiner (1997) explains that there are three factors that contribute to global change. First, the
gross national product (GNP) to grow and increase rapidly. Second, the revolution in
communication technologies. Third, the forces that facilitate the emergence of large
companies on a global scale.