Globalisation is an unavoidable phenomenon that connects all\ncountries, from technological and informational growth to social and\neconomic aspects. In the economic field, globalisation brings\nsignificant impacts to a country, including access to international\nmarkets and capital, influx of foreign investment, technology exchange,\nand broader employment opportunities. In practice, it encourages\ncountries to specialise in certain fields, expand job markets, and drive\neconomic growth. A simple illustration is a US smartphone brand\nentrusting component production to China, assembly in South Korea, and\nsales to the global market. This entire chain of activities is known as\neconomic globalisation.<\/p>\n
Examples of Economic Globalisation Occurring in Indonesia<\/p>\n
Foreign Direct Investment is common in various countries, including\nIndonesia. It takes various forms, such as establishing or acquiring\ncompanies, or investing through capital markets. This practice is\ntypically undertaken by foreign countries or companies seeking access to\nnew markets, lower production costs, and resources not available in\ntheir home countries. In April 2026, Indonesia officially signed a\ncooperation agreement with South Korea committing US$10.2 billion\n(approximately Rp173 trillion) in investment. This investment targets\nstrategic sectors such as energy, industry and manufacturing,\ntechnology, and infrastructure. The impacts are substantial, including\npotential economic growth, technology transfer from South Korea to local\nworkers, job creation, and more.<\/p>\n
A lesser-known fact is that many world-renowned brands do not handle\ntheir own production lines but outsource to third parties or invest in\nfactories in certain countries. This practice is commonplace, especially\nin the fashion, technology, and automotive industries. In Indonesia, one\nglobal brand producing its goods here is Adidas, with a factory in\nBrebes, Central Java.<\/p>\n
In the digital era, global society is increasingly facilitated in\nshopping through various e-commerce platforms, such as TikTok Shop,\nShopee, Temu, and Amazon. Previously, these platforms operated only in\ntheir respective countries, but now everyone worldwide can use them to\nshop for goods from abroad without visiting. Besides targeting consumers\n(B2C), there are also e-commerce platforms targeting businesses (B2B).\nTheir presence makes it easier for producers to reach and acquire\ninternational clients.<\/p>\n
Globalisation facilitates countries in forming trade cooperation\nthrough numerous negotiations. The agreements vary, from reducing\nexport-import tax costs to competitive pricing deals. A real example\noccurred when Indonesia and the United States agreed on the Agreement on\nReciprocal Trade (ART) in February 2026. Under this agreement, the US\nwaived import duties on 1,819 tariff positions for Indonesian exports.\nIn return, Indonesia waived import tariffs on US products, including raw\ncommodities like wheat and soybeans.<\/p>\n
To compete globally, many large companies invest by establishing\nfactories or branches in various countries to leverage their advantages.\nThis practice benefits both parties: Foreign companies gain strategic\nlocations for factories, competitive wages for human resources, and\ndirect access to natural resources as main production inputs. For the\nhost country, the presence of foreign companies creates jobs, increases\nproductivity and competitiveness, boosts state tax revenues, and\ntransfers technology and knowledge to the workforce. In Indonesia,\nseveral multinational companies have operated for a long time, such as\nUnilever, Freeport, and Coca-Cola.<\/p>\n
Amid the massive use of e-commerce, there has been an increase in\ncross-border transaction activities. This drives global banks to invest\nand expand their services in various countries, such as opening\nbranches. Besides banking, the cloud computing industry also feels the\nimpact, as many local companies start using cloud services to manage\nbusiness data securely without incurring high costs for building their\nown servers.<\/p>\n
International trade provides opportunities for various sectors to\ncompete on the global stage. Traded products range from raw materials to\nfinished goods. However, to penetrate international markets, quality\nstandards must be met, such as CE Marking (product safety), FSC\n(sustainable wood\/forestry certification), and others. Complying with\nquality standards is not only an obligation but also a learning\nopportunity for businesses to provide world-class products and\nservices.<\/p>\n
Foreign investment not only brings capital but also serves as a means\nof knowledge transfer to local workers. Through direct interaction in\nthe workplace<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/9-examples-of-economic-globalisation-occurring-in-indonesia-1775926259", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }