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This paper analyses the economic impact of globalisation in Indonesia from the end of the 1960s to date. The analysis found that globalisation generated a positive impact on Indonesia's economic growth through the trade and investment channel; reduced wage inequality and child labour participation; and increased labour absorption, including women's participation in the labour market. Through the trade channel, globalisation also contributed to Indonesia's productivity and structural economic transformation, benefited small and medium-sized enterprises (SMEs), contributed to poverty alleviation and reduced inequality, and increased trade in services such as tourism. Through the investment channel, there is evidence of the spillover effect of technology transfer, technology progress, improvement of the role of SMEs, and contribution to poverty alleviation. The waves of open and more restrictive trade and investment policies, which Indonesia has gone through in the last few decades, reflect the political economy reality – that is, the impact of globalisation is dynamic and only felt in the medium term, whereas the cost and potential negative impact is often felt more immediately throughout trade creation. The trade creation increases imports from countries with which free trade agreements have been negotiated, thus decreasing the domestic producer surplus. Since globalisation will create net benefits in the long run, Indonesia should continue its process of globalisation and integration with the world economy to ensure the net benefits and to move forward in its structural transformation, while managing the costs of globalisation and its transition process.

This book discusses Indonesia's international economic strategies. It examines unilateral aspects, foreign direct investments, bilateral economic relations, regional elements, ASEAN's role, and the Indo-Pacific's dynamic frameworks. Starting at the unilateral level, the book outlines how Indonesia managed its macro-economy to recover quickly and adequately from 2020 to 2021 amidst the global COVID-19 pandemic. It argues that Indonesia needs an open economic principle to enhance trade and investment relations. In addition, the book elaborates on how Indonesia transforms its economy with export-oriented long-run investment (Foreign Direct Investment) inflows as a necessary condition for economic transformation as it fits with Indonesia's manufacturing sector, which is critical to the country. Further, the book thoroughly explains Indonesia's bilateral economic relations, from its production networks with Indonesia's major partners to their impacts. It highlights the products which will provide enormous potential benefits for the country. The book also covers regional and mega-regional aspects of Indonesia's economy. Focusing on the Association of Southeast Asian Nations (ASEAN), it emphasises the regional organisation's three essential principles for economic integration: openness, convergence, and inclusiveness. In doing so, research in the book also includes perspectives on how ASEAN sees Asia and the Indo-Pacific framework. It also argues that ASEAN needs centrality in enlarging its economic cooperation with other countries or regions and how a member state's unilateral and bilateral liberalisation are building blocks for ASEAN. Kiki Verico is the author of The Future of The ASEAN Economic Integration (Palgrave Macmillan, 2017), which explores open regionalism as the necessary condition of the ASEAN economic transformation. Kiki is a tenure track professor in International Economics at the Faculty of Economics & Business University of Indonesia (FEB UI) and a Senior Researcher of the LPEM UI. He has been working as a lecturer and researcher for more than 20 years. He dedicates himself to teaching and doing collaborative research with government institutions, international organizations, business associations, and many others. Since his appointment in January 2020, he has served as a Senior Advisor for Industry and International Trade to Indonesia's Finance Minister

Shifting from intra-regional trade to that of investment is the major aim of the economic integration of Southeast Asia. This article attempts to analyse the two essential factors of it, one is intra-regional trade and two is economic community. For the first analysis it selects Indonesia, Malaysia and Thailand as the observed countries and for the second analysis it takes Indonesia as the field study. Firstly, this article finds that free trade agreement is effective to increases intra-regional trade but ineffective to attract investment therefore Southeast Asia needs to amplify its open-regionalism principle. Secondly, it finds that private sector is ready towards the economic community therefore the ASEAN Economic Community is fit for the recent Southeast Asia's integration.

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