Turning Global Turbulence into National Opportunity: Indonesia’s Response to the World’s Long Economic COVID
By Teguh Anantawikrama
Vice Chairman, Indonesian Chamber of Commerce (KADIN) and
Chairman, Indonesian Tourism Investor Club
INVESTORTRUST.ID - The COVID-19 pandemic may have receded as a public health emergency, but its economic aftershocks continue to reverberate across the globe. We now live in what economists call a period of “The World’s Long Economic COVID” — a prolonged phase marked by weakened purchasing power, volatile markets, and persistent structural disruptions.
From rising inflation to labor shortages and fractured global supply chains, the world’s recovery has been uneven and fragile. The purchasing power of ordinary citizens is eroding.
Middle-class families, once the engine of global consumption, are feeling the squeeze. Even advanced economies are grappling with stagflation risks, while developing nations face the dual pressures of depreciating currencies and surging debt costs.
But amid this turbulence, Indonesia stands as a case study in resilience — not by accident, but by design.
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Indonesia’s Internal Engine of Growth
Our archipelago has weathered this economic storm through a combination of demographic strength, policy pragmatism, and bold reform. With a population approaching 280 million, we are not merely surviving on external markets. Our internal engine — driven by domestic consumption, digital acceleration, and micro-enterprise empowerment — continues to generate real growth. This is not just resilience; it is an emerging model for economic self-reliance in the post-pandemic world.
Throughout the crisis, Indonesia’s policymakers made difficult but forward-thinking decisions. Inflation was contained through targeted subsidies. Our central bank acted with restraint, balancing the need to control prices while preserving credit access for businesses. The result? A stable macroeconomic environment in an era of global disarray.
Moreover, Indonesia’s strategic pivot toward downstream industrialization — especially in critical minerals like nickel — has enhanced our trade balance and attracted new waves of investment. By shifting from mere resource exporter to value-added producer, we are rewriting the rules of our economic future. This is not just a policy choice. It is a statement of national intent.
A Rebound in International Tourist Arrivals
Importantly, amid global trade wars and realignments in supply chains, Indonesia’s has emerged as one of the most resilient and adaptive industries. Unlike commodity exports or high-tech supply chains, tourism is rooted in culture, nature, and human connection — elements that are relatively shielded from tariffs, trade sanctions, and geopolitical frictions.
Domestic tourism is thriving, fueled by shifts in the lifestyle of the middle class, digital platforms, and improved connectivity. International arrivals are also rebounding strongly, supported by the government’s focus on sustainable destinations, heritage-based experiences, and culinary diplomacy.
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As Chairman of the Indonesian Tourism Investor Club and Vice Chairman of the Indonesian Chamber of Commerce, I have seen firsthand how collaboration between government, industry, and local communities is fueling recovery with dignity and inclusion. This sector is not just about leisure — it is about livelihoods, pride of place, and economic diversification.
Indonesia is not a victim of global disorder
Let us also acknowledge the quiet engine of our recovery: the MSMEs. These small and medium enterprises are not just economic actors — they are lifelines for millions. They must be at the center of any future strategy, and that is why my work in empowering UMKM through HIPPI, KADIN, and grassroots initiatives remains deeply personal.
Yet we cannot be complacent. The world’s economic “long COVID” will continue to challenge global systems — from finance to food security. Geopolitical uncertainty, climate shocks, and digital disruption are the next wave of tests. Indonesia must not only adapt — we must lead. Through innovation, cooperation, and confidence in our national identity, we can do so.
In this uncertain world, one thing is clear: Indonesia is not a victim of global disorder. We are a country in motion — and if we stay the course, we may emerge as a new center of gravity in a reshaped global economy. ***