World Moving Towards Era of Deglobalisation, Says Jusuf Kalla

Jakarta, VIVA – The 10th and 12th Vice President of Indonesia, Jusuf Kalla (JK), believes the world is currently shifting from the era of globalisation towards deglobalisation. He outlined several indicators of this shift, most notably the increasing role of the state in regulating economic activities, a phenomenon commonly referred to as state capitalism.

JK stated that this transition 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. “Coincidentally, we are currently unwell. I am speaking now at a time when we are suffering. This financial ailment is not limited to Indonesia; almost the entire world is suffering,” JK said during his speech at The 2026 Asia Grassroots Forum by Amartha in Jakarta, reported on Friday, 5 June 2026.

According to him, the changing way the world manages its economy is a cycle that occurs every few decades. He noted that while the world previously moved within the currents of globalisation, which encouraged more open cross-border trade and investment, many countries are now strengthening protectionist policies and government intervention in the economy.

“Previously, we were very familiar with globalisation; now, people are moving towards deglobalisation,” he remarked.

JK explained that this trend is evident in the increasing level of government interference in trade and the management of strategic industries. He cited the United States, traditionally known as a primary supporter of the free market, as now implementing high import tariffs on various products to protect its domestic industries.

In Indonesia, he continued, the state’s role is also becoming stronger in the management of strategic commodities, including through single-door export regulations for coal, crude palm oil (CPO), and ferroalloy.

Amidst these changes, JK emphasised the importance of a balanced role between the government and the private sector in maintaining economic growth. He stated that the government’s duty is to provide regulation, infrastructure, and oversight, while the business sector is responsible for creating investment and employment for the community.

JK also reminded that economic growth cannot be separated from the people’s ability to earn an income. He noted that when the public has sufficient income, consumption will increase, ultimately driving economic activity.