Indonesia and the complex global economic order: Implication of global and regional economic arrangements on Indonesia’s trade

Devita Prinanda; Haryo Prasodjo; Rennatha Pradhesty Kusumawardany

doi:10.12928/optimum.v15i1.12102

Authors

Devita Prinanda Universitas Muhammadiyah Malang
Haryo Prasodjo Universitas Muhammadiyah Malang
Rennatha Pradhesty Kusumawardany Universitas Muhammadiyah Malang

DOI:

https://doi.org/10.12928/optimum.v15i1.12102

Keywords:

Global economic order, International trade, Regional integration

Abstract

The complexity of the world economic order means that countries have to follow many regional and global rules. International agreements involve many joint commitments built primarily in the economic field. Indonesia is a developing country that is involved in many international economic frameworks. At the global level, Indonesia is subject to the rules of the Bretton Woods system. Meanwhile, in the regional framework, Indonesia plays a full role in ASEAN's economic system. It does not contain Indonesia's involvement in other international economic orders such as APEC, G20, and so on. This research maps the global economic order in which Indonesia is involved and looks at the implications for Indonesia's international trade. The author uses world economic order approach to examine this topic. The result show that Indonesia has been involved in several economic order regionally and globally. The implication of the study government of Indonesia need to maintains its positive balance of trade although struggles with regional and global competitions.

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