Impact of the Global Economic Crisis on the Indonesian Market The global economic crisis, which is often triggered by international market fluctuations or political instability, has a significant impact on the Indonesian market. By becoming one of the countries that is integrated in the global economic system, Indonesia is not immune from the negative and positive influences it causes. One of the direct impacts of the global economic crisis is the decline in exports. Indonesia, as a country with many main commodities such as oil, gas and agricultural products, is highly dependent on foreign markets. When demand from developed countries such as the US and Europe declines, Indonesian exporters experience difficulties, which leads to a decline in national income. Not only exports, but also the foreign direct investment (FDI) sector experienced a significant impact. In crisis situations, investors tend to withdraw their investments to reduce risk. This could lead to delays in major projects and cancellation of new investment plans, further affecting the development of infrastructure, technology and job creation in Indonesia. In terms of currency, global crises often cause depreciation of the rupiah exchange rate. This exchange rate instability adds to the burden on companies that owe debts in foreign currencies. Rising debt costs can undermine financial stability and force companies to streamline operations, often leading to layoffs. The banking sector also did not escape the impact of the crisis. When the economy slows, loan default rates increase. Banks, as intermediation institutions, face higher liquidity risks, which in turn affects their ability to provide new loans to small and medium enterprises, a sector that is vital to Indonesia’s economic growth. On the positive side, the global economic crisis could encourage Indonesia to focus more on economic diversification. Vulnerability to global markets can trigger the government to increase investment in domestic sectors, such as agriculture, creative industries and tourism. This can also create new opportunities for innovation and development of local products. The crisis also spurs people to be wiser in shopping and investing. Awareness of the importance of maintaining financial stability has had a positive impact on local industry, because consumers are more likely to buy domestic products rather than more expensive imported products. In the context of public finances, the global economic crisis can encourage governments to make more adaptive fiscal policies. By increasing social spending and social protection programs, the government can help communities directly affected by the crisis. This is important to maintain social and political stability amidst economic uncertainty. Furthermore, the technology and digital sectors in Indonesia showed relatively good resilience to the crisis. Accelerated digital transformation and adoption of new technologies are helping companies to stay competitive. Start-ups that focus on digital solutions can grow rapidly, creating new jobs and innovation that supports economic recovery. Recovery from the global economic crisis requires cooperation between government, the private sector and society. By taking advantage of emerging opportunities and overcoming the challenges it faces, Indonesia can emerge from the economic crisis in a stronger position, increasing its resilience and competitiveness on the global stage. Overall, although the global economic crisis has brought many challenges to the Indonesian market, there are opportunities for growth and adaptation that can be exploited going forward.
