Indonesia’s Economy in a Multipolar World: Time to Stand Firm on Our Own Feet

Oleh: Arizal Mahdi

Jakarta – detikperistiwa.co.id

The world is currently transitioning into a multipolar order. The once-unquestioned economic dominance of the United States is gradually being replaced by the rise of new powers such as China, India, Russia, and the consolidation of the BRICS nations. In this shifting global dynamic, Indonesia can no longer afford to be passive or await direction from foreign powers. Now is the critical moment for Indonesia to position itself as a sovereign, just, and people-oriented regional economic force.

“We cannot rely on foreign powers to rescue our national economy. It is the Indonesian people themselves who must become the driving force,” said Arizal Mahdi, Chairman of Relawan Peduli Rakyat Lintas Batas.

To respond effectively to these challenges and opportunities, Indonesia must strengthen its economic foundation through three core pillars: the people’s economy, reform of national industrialisation, and an active yet independent economic diplomacy.

Firstly, the people’s economy must become the backbone of development. National economic growth must genuinely touch the lives of workers, farmers, fishermen, and micro, small, and medium enterprises (MSMEs). The government must provide affordable financing, wide market access, and technical assistance. Villages must be developed as centres of national food security through sustainable organic agriculture and community-based labour-intensive programmes to create employment.

Secondly, Indonesia must urgently reform its industrial sector. Dependence on raw material exports must be ended. The country must promote downstream, environmentally friendly industries that absorb local labour. Transitioning to green energy is equally vital to reduce reliance on imported fossil fuels, which exposes the national economy to volatility. This must be accompanied by domestic technological advancement through collaboration between industry, academia, and research institutions.

Thirdly, Indonesia needs to pursue an active yet neutral economic diplomacy. In a multipolar system, a strategic non-aligned position is key. We must expand trade partnerships with Central Asian countries, Latin America, Africa, and strengthen cooperation with BRICS+. Additionally, cross-border transactions in local currencies must be intensified to maintain the stability of the rupiah. Indonesia must present itself as a mediator in global economic tensions to gain greater recognition on the world stage.

Nevertheless, the journey towards economic sovereignty will not be easy. We face major challenges, ranging from unequal asset distribution and dependency on foreign debt, to foreign intervention that reduces Indonesia to a mere market. All of this must be countered with political courage and a massive movement of the people’s economy.

“Indonesia’s economy must not be exclusive to the elite. This is the people’s economy, and it must return to the people,” affirmed Arizal Mahdi.

As Chairman of Relawan Peduli Rakyat Lintas Batas, I call upon all elements of the nation to join in building a sovereign, productive, and just people’s economic movement. Amidst the global shift of power, only a nation that believes in the strength of its own people will endure—and lead—this change.

In closing, it is time for Indonesia not only to rise but to stand side-by-side with its neighbours in Southeast Asia and with fellow nations of the Global South. Let us forge a new era of equitable global economic cooperation—one that honours sovereignty, values solidarity, and uplifts the dignity of all nations.

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