Jakarta (ANTARA) - The world is leaving behind an era when economic\ngrowth could be built primarily through free trade, cheap energy, and\nefficient global supply chains. The economic model that has supported\nglobalisation for decades is now losing its foundation.<\/p>\n
This change has become increasingly evident in recent years. The\npandemic disrupted cross-border goods distribution, wars have shaken\nenergy and food supplies, while rivalries among major powers are driving\ncompetition for technology, strategic minerals, and global trade\nroutes.<\/p>\n
As a result, the global economy is moving towards a new pattern that\nis more expensive, more cautious, and increasingly influenced by\ngeopolitical interests.<\/p>\n
In this situation, many countries are beginning to reduce their\ndependence on external parties. Strategic industries are being relocated\ncloser to domestic markets, investments are being screened more\nstrictly, and supply security is becoming a top priority.<\/p>\n
The world is not entirely abandoning globalisation, but economic\ninterconnectedness is now built on a different logic than before.<\/p>\n
If in the old era efficiency was the primary goal, in the new era\nresilience is equally important. Countries are willing to pay higher\nproduction costs to maintain the stability of their national energy,\nfood, technology, and industries.<\/p>\n
It is this change that is giving birth to global fragmentation. The\nworld economic system is no longer operating as one relatively open\nlarge market, but is beginning to divide into narrower and more\nstrategic networks of interests. Economic relations are increasingly\ninfluenced by political calculations, security, and the struggle for\ninfluence between countries.<\/p>\n
The consequences are already being felt in various sectors. Energy\nprices are more volatile, logistics costs are rising, and international\ntrade is increasingly vulnerable to geopolitical conflicts.<\/p>\n
When disruptions occur in strategic routes like the Strait of Hormuz,\nthe impact can quickly spread to inflation, production costs, and global\nfinancial markets.<\/p>\n
This situation marks the end of the cheap economy era that has long\nbeen one of the engines of world growth. Cheap energy, cheap\ndistribution, and cheap production can no longer be fully guaranteed in\na world that is becoming increasingly fragmented.<\/p>\n
For Indonesia, this change presents challenges that are far more\nfundamental than simply maintaining annual economic growth.<\/p>\n
The issue is not just how to maintain stability amid global\npressures, but how to avoid the trap of becoming a raw material supplier\ncountry in the new, increasingly competitive economic system.<\/p>\n
For years, Indonesia\u2019s economy has been relatively supported by a\ncombination of commodity exports and domestic consumption. This model\nhas been quite effective when global trade is in stable conditions.<\/p>\n
However, in a world increasingly filled with geopolitical rivalries\nand supply chain uncertainties, dependence on commodities actually\nincreases economic vulnerability.<\/p>\n
When energy prices surge or global trade slows, the impact is\nimmediately felt on exchange rates, inflation, state revenues, and\ndomestic industrial production costs. External pressures enter the\nnational economic system more quickly.<\/p>\n
The challenge<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/global-fragmentation-and-the-end-of-the-cheap-economy-era-1778158509", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }