Indonesia and Globalization

This article explores Indonesian attitudes and policy responses toward globalization. In Indonesia, globalization is perceived as an objective condition of international life that structures policy choices for state and societal actors. Opinion varies widely, however, over whether globalization is a positive or negative force. Given these differences, it is argued that the most fruitful way to understand globalization in Indonesia is to analyze the responses of state and societal actors toward the three values promoted in the current era of globalization: liberal capitalism; democracy; and respect for human rights. The responses of the Suharto, Habibie, and Wahid administrations to global pressures for economic liberalization, democracy, and human rights are reviewed to illustrate that Indonesian policy toward globalization has varied over time. The article concludes that the rise of an anti-Western nationalism combined with a more open political environment may make it more difficult for Indonesia to adopt liberal economic policies in the future.