Strategic Diversification as Indonesia’s Foreign Economic Policy

Indonesia faces a more volatile global economy where geopolitical tensions disrupt trade, investment, and supply chains. Strategic diversification is needed to balance openness with targeted intervention and reduce dependency risks. Current efforts remain fragmented, with weak coordination and structural constraints. Key sectors—food, energy, manufacturing, and technology—show vulnerabilities and limited resilience. Strengthening decision rules, improving interagency coordination, and upgrading domestic capabilities are critical to enhance resilience, preserve strategic autonomy, and support sustainable long-term economic transformation.

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