Jusuf Kalla Says the World is Now Shifting Towards a Deglobalisation Era

Jakarta - The 10th and 12th Vice President of the Republic of Indonesia, Jusuf Kalla (JK), assesses that the world is currently shifting from the era of globalisation towards deglobalisation, marked by the increasingly significant role of the state in regulating economic activity, commonly referred to as state capitalism. In his speech at The 2026 Asia Grassroots Forum by Amartha in Jakarta on Thursday, JK said this change is occurring amidst a global economic slowdown triggered by various geopolitical conflicts, ranging from the Russia-Ukraine war to tensions in the Middle East and South Asia regions. “Coincidentally, we are currently ailing. I am speaking now at a time when we are ailing. The ailment is not only in Indonesia, but almost the entire world is ailing, this financial problem,” said JK. According to him, changes in how the world manages its economy are a cycle that occurs every few decades. He stated that while the world previously moved under the current of globalisation, which encouraged more open cross-border trade and investment, many countries are now actually strengthening protectionist policies and government intervention in the economy. “If previously we were very familiar with globalisation, now people are moving towards deglobalisation,” he said. JK explained this trend is visible from the growing government interference in trade and the management of strategic industries. He cited the United States, which has long been known as one of the main proponents of the free market, as now imposing high import tariffs on various products to protect its domestic industry. Meanwhile in Indonesia, he continued, the state’s role is also increasingly strong in managing strategic commodities, among others through single-door export arrangements for coal, crude palm oil (CPO), and ferroalloy commodities. Amidst these changes, JK stressed the importance of a balance between the roles of government and the private sector in maintaining economic growth. According to him, the government has the task of providing regulation, infrastructure, and oversight, while the business world plays a role in creating investment and jobs for the community. JK also reminded that economic growth cannot be separated from the community’s ability to earn an income. He stated that when people have sufficient income, consumption will increase and ultimately drive economic activity. He added that strengthening the business sector, particularly micro, small, and medium enterprises (MSMEs), is also an important step to maintain economic momentum amidst uncertain global conditions.