Globalization is a process by which social relationships and
interdependence between countries and between people is becoming increasingly
limitless. Meanwhile, according to Selo Soemardjan, globalization is the
establishment of systems and communication between community organizations
across the world to follow the system and rule - the same rules. Globalization
occurs in the field of information, economics, and culture. Indonesian
government has long menggembar - heralding of globalization itself. With
community expectations and industry players prepared for all the effects of
globalization, especially the impact of globalization on the economic
development of Indonesia.
The
free market is a real form of economic globalization. The influence of
globalization on Indonesia's economic development is the growth of creativity
among economic actors Indonesia and increasingly global products - products
made in Indonesia. With globalization, economic actors, are required to be
increasingly creative to create products - products that not only compete with
each other domestically made products, but also be able to compete with the
products - the products of other countries. Without the development of
products, to be sure their products will not be sold on the market. Especially
since CAFTA (China Asia Free Trade Association) apply, the goods - goods from
China began to flood the Indonesian market. Not only the shape and appearance
of products of interest, but also offered a very cheap price when compared to
products - products made in Indonesia.
Actually, many people who regret why Indonesia signed the
CAFTA. Not only because Indonesia is considered the industrial world is not
ready to face the impact of globalization on the economic development of
Indonesia, but also because of the internal condition of the Indonesian economy
is still not stable. But the reason that Indonesia will become the country far
behind in economic fields if not participated in the CAFTA agreement, it is
ready or not, Indonesia finally engage in a free market in Asia.
For some industry players, especially those that have been
relying on imported raw materials from China, even to those who benefited from
the inclusion of Indonesia into the free market of Asia. They can get raw
materials at prices much cheaper because it does import tariff elimination
agreements which can suppress many of the costs they must incur. By getting a
cheap raw material, it will automatically be growing industrial activities.
That is a positive example of the impact of globalization on the economic
development of Indonesia.
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