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Fakultas Ilmu Sosial & Ilmu Politik

The global economic polycrisis and indonesian economy: Towards economy resilience and agile governance

Authors: Abdillah Abdillah; Ida Widianingsih; Rd Ahmad Buchari; Heru Nurasa (Universitas Padjadjaran, Indonesia); Thannaphat Khotsing (National Institute of Development Administration, Thailand).

This book chapter explores how Indonesia responds to global economic pressure, social inequality, development disparity, and climate vulnerability as interlinked challenges within today’s global polycrisis. Adopting an exploratory qualitative method with a case study approach, the chapter highlights adaptive strategies and institutional resilience.

The findings reveal that Indonesia demonstrates strong economic resilience, enabling the country to remain optimistic amid global crises. This resilience is evidenced by positive state revenue performance, driven by taxation and non-tax revenue (PNBP), supported by domestic recovery, improved export–import performance, and a significant surge in commodity prices.
Key drivers include:
1. Rising global commodity prices,
2. Increased economic growth rates,
3. Strengthening demand,
4. Low-base effect from the previous year,
5. Regional cooperation commitments, especially within ASEAN, to optimize resources and strengthen collective economic capacity.

This chapter underscores how Indonesia’s adaptive strategies not only enhance its ability to withstand global shocks but also align with SDG 8 (Decent Work and Economic Growth).