Globalisation and the Indonesian Economy.

Globalisation refers to the increasing economic integration between countries leading to the emergence of a global market place and customisation of goods, services and technology. Indonesia is the world's fourth most populous nation and the anchor of Southeast Asia politically and economically. The country has a strategic location, a large labor force earning relatively low wages, and abundant natural resources. Globalisation has introduced a series of structural adjustments to Indonesia's economy through liberalisation, marketisation, deregulation, …

…in the absence of foreigners. Globalisation expands opportunities, but it also brings risks. It has created higher economic growth and better living standards for Indonesia but also introduced the risks for the poor and inequality. Indonesia has undergone tremendous change and is still to emerge from its current political and economic crisis. Prospects to future growth remain internal reform, the build-up of the confidence of international investors, and a strong comeback in the global economy.