Two Impacts of Globalization on the Indonesian Economy – Below is information about the two impacts of globalization on the economy of Indonesian society, so watch this article to the end to find out more complete and clear information.

One of the terms that you may often hear is globalization. What exactly is globalization? Globalization is a term borrowed from English.

The word globalization consists of two syllables: global, which means "world", and lization, which means "process".

Definition of Globalization

Consequently, linguistic globalization is a global process. Some figures also help explain the meaning of globalization:

Globalization, according to Antony Giddens, is an extraordinary social relationship with the world that can connect people who live in different places.

According to Malcom Waters, globalization causes geographical and cultural boundaries to disappear in one's mind, but these boundaries do not really disappear. But just to be ambiguous.

According to Mansour Fakih, globalization is marked by the role of the market which is increasingly experiencing investment progress, and the role of the market and the economic sector in general are interconnected.

In today's millennial era, everything is simple, including searching for news or moving news from one location to another, regardless of distance or time difference.

Everything will be easy to understand without requiring much effort. That is, only by utilizing advances in technology will all problems be solved.

This is certainly very different from ancient times, when events that occurred in the past would only be known too late.

The emergence of globalization is aided by the existence of various technologies that are increasingly sophisticated and useful in human life. Everything can be done quickly, precisely, and satisfactorily in this globalization era.

However, behind many things that are getting easier, globalization has positive and negative consequences.

Definition of Globalization

Globalization is a term borrowed from English. It is a word composed of the words global (global) and lization (process). Globalization is defined differently by different people and experts.

Definition of Globalization in General

The general understanding of globalization is a global or comprehensive process that has no ties to either national or regional boundaries.

This means that everyone can connect and exchange information and news through electronic media at any time and from any location.

Understanding globalization in language is a process that is capable of worldwide. This globalization causes countries to not feel broad because it is easy to communicate between countries in all fields such as exchanging information or trade.

Definition of Globalization According to Experts

The following are some definitions of globalization by experts from abroad:

1. According to Laurence E. Rothernberg

Globalization is an acceleration of an interaction and unification of people, companies and governments from different countries.

2. According to Anthony Giddens

Globalization is an intense social relationship worldwide to connect other places between one event that has occurred in one place and another which then causes a change in each one.

3. According to Dr. Nayef RF Al-Rodhan

According to Dr. Nayef RF Al-Rodhan

Globalization is a process consisting of causes, cases and consequences of transnational as well as transcultural unions on a large scale in the activities of living things.

4. According to Emanuel Richer

Globalization is a global network that unites people together who were previously scattered and isolated into interdependent relationships in one world.

5. According to Martin Albrow

Globalization is the whole process of the population intertwined in a single world community, namely global communication.

6. According to Malcom Waters

Globalization is a social process that is able to make natural boundaries with the social and cultural atmosphere less important, and manifests itself in one's consciousness.

Globalization According to Domestic Experts

The following are some definitions of globalization by several experts:

According to Selo Sumardjan

Globalization is a process that is formed from the existence of an organization and communication of people in the world to participate in a certain system.

According to Achmad Suparman

Globalization is a process that can make an object or attitude a characteristic that comes from each individual in the world without any restrictions.

Globalization Theory

There are so many theories that explain the theory of globalization that have been put forward by several experts.

One of them is the theory of globalization according to Cochrane and Pain that globalization has 3 important explanations, namely:

1. The Traditionalists

Traditionalists say that people assume that they don't care that globalization actually happened.

According to them, globalization is only a process that has been impacted since ancient times.

2. The Transformers

The Transformalists are people who are in the middle, namely the traditional and the global, where they think that globalization is indeed happening but there is no need to exaggerate it.

3. Globalist


Globalists think that the existence of globalization is a form of life consequences that occur in all parts of the world which will later give rise to a new culture, namely a homogeneous culture that becomes spread throughout the world.

According to globalists, the positive impact that might occur in this case is an increasingly open mindedness and a higher tolerance for cultural differences.

And for the negative impact of globalization, it can eliminate the original culture which is the identity of the people and a form of colonization of the homeland.

Another globalization theory

Another theory of globalization, put forward by an expert named George Ritzer, is that the era of globalization will begin with advances in technology and communications such as telephone and television which will gradually be realized by the public.

Factors Causing Globalization

The following are some of the causes of globalization:

1. The increasingly sophisticated field of technology and information

The development of information and communication technology has had an impact on the ease of conducting money transactions in all parts of the world.

In the past few years, quite a lot of technology has begun to experience developments that are directly related to matters of money transactions which certainly make it easier to make transfers both between cities and all over the world.

The existence of a development of information and communication technology which has a role to facilitate all kinds of economic transactions from one country to another.

Over time, the prowess of information technology is getting better, this of course will encourage a variety of growing economic activities, which were initially only between cities, between regions, between islands, now they can even penetrate between countries.

2. The wider cooperation that has been established to international class

The more advanced the era of globalization, the level of cooperation will begin to experience expansion to the international level.

The wider cooperation that is established to international class

The existence of international economic cooperation which makes it easier for existing agreements from several countries that have close relations.

The number of countries that are at peace and then unite to build this strength is also one of the factors that is quite strong behind the causes of globalization.

With the strength of economic relations that are already worldwide, for any needs it will be easy to distribute and easy to obtain.

3. Means of transportation are easier to obtain

This easier transportation means the easier the goods expedition system which is getting better from year to year even though the distance is very, very far.

There are advances in science in the field of technology and transportation that are able to facilitate transportation services in sending goods between countries.

In the past, perhaps access to work together to exchange crops or various needs was quite difficult.

Due to the limited means of transportation, it is still very difficult to transport goods to reach more distant places.

With the progress of the thinking of a scientist who wants to develop and advance this means of transportation, it supports a lot of economic processes that are getting easier to do even though it has to be between countries.

4. There is an open economy

One of the causes of globalization is the openness of the economy between countries which makes it more open and easy for one another.

Features of Globalization

There are 4 characteristics of globalization, the following are the characteristics of globalization:

The wider social, political and economic activities in the region, regional to global.

In the beginning, perhaps due to limited support for carrying out social, political and economic activities, this makes the reach not too broad.

Until finally new discoveries appeared that could finally support access to the world making this social, political and economic feel very easy even to send goods or services did not take a long time.

There are increasing links between trade, investment, cultural exchanges, finance and migration.

At present there are many people who have started to think better, their thinking has begun to develop so that their range of social and economic and cultural activities is sufficiently developed.

Initially the coverage was only between cities, between regions, between provinces, between islands, between countries, and between continents.

There is an acceleration of interaction and worldwide communication, namely with the emergence of an advanced transportation system, to the increasingly rapid diffusion of ideas, information, capital, goods and society.

The increasing number of scientists who want to develop their knowledge in the world of transportation are able to make many sophisticated systems which in the end one by one the means of transportation experience innovations with a better touch and more sophisticated applicators than before.

With this means of transportation which is starting to increase in sophistication, it can develop other ideas, so that it is very supportive in doing various things including the faster diffusion of ideas, information, capital, goods and society.

Impact of Globalization

There are two impacts of globalization, namely the positive impact of globalization and the negative impact of globalization:

Impact of Globalization

The Positive Impact of Globalization

The following are some of the positive impacts of globalization:

1. The increasing number of new buildings. In the past, maybe the conditions of residence or mukim of these residents were only simple, with this globalization, it turned out that the construction of houses was increasingly enlivened, which was intended to increase the prestige and comfort of the owners.

2. Communicating is getting easier and faster. The emergence of increasingly sophisticated communication tools such as mobile phones to smart phones whose form may look quite simple but for usability can be said to be very helpful to the community in various ways.

Now, to convey information, a person no longer needs to go somewhere for information to be conveyed.

Now, by simply pressing a button or screen on a communication device, all kinds of information can be conveyed faster and better, not just ordinary messages, but also in the form of video, sound or images all at once.

3. There is an increase in the economy, namely being able to become more effective, efficient and productive. Globalization is marked by the emergence of many innovations in various ways that make everything look easier and more sophisticated.

This technological sophistication makes economic activities faster and more precise so that at one time it can easily increase the amount of production that can be made.

4. The number of tourists began to increase. With the development of technology, information about tourist attractions can spread quickly.

This makes various tourist attractions that were not very accessible at first become a new challenge so that many are interested in coming and trying them.

5. It is easier for information about knowledge to be obtained. The existence of technological advances, making the internet.

Well, it is from the internet that information about all kinds of knowledge is here. That way, to increase knowledge, one will not feel bothered even while lying down at home without going anywhere, without having to go to the library one can still acquire knowledge.

6. An increase in the standard of living of the people. The existence of this community's standard of living is the desire to equalize prestige with one another.

This led to the emergence of people's desire to have a high standard of living. This raises the spirit of working to be better than before.

7. Able to make a spur on individual quality. The existence of someone who is an achiever or a scientist who is able to make discoveries is able to make other individuals feel motivated to improve their quality by increasing the knowledge they have so that they can be like the others.

8. Transportation is getting easier to use. Now is no longer the time to have to wait for transportation, or to be complicated dealing with all the administration with all the quite complicated needs.

Now, transportation or tickets to get to a place can be easily obtained by simply tapping on a smart phone screen without having to stand in line in front of the counter. You can also get a more accurate price when making a transaction or ordering a ticket online.

Negative impact

The following are some of the negative impacts of globalization:

1. Starting to reduce the sense of solidarity between friends. The existence of this globalization spurs someone to be superior to other friends, it's no wonder that this sense of solidarity is increasingly eroding.

Negative impact

2. The loss of a sense of concern among others. Caring between friends now is only limited to a mode to achieve a certain goal, namely the feeling of caring exists not because it is sincere from the heart but because there is a specific purpose behind the care given.

3. Rarely do mutual cooperation activities. The traditional attitude that is very close to the village community is increasingly fading, whether it's because of busyness that is getting busier so that there is no more time for just carrying out mutual cooperation activities.

4. There is no more solidarity between friends. Loyalty without limits can now be bought at a price, how much you can give money then that's how much loyalty can be created.

5. More and more people are starting to be consumptive. This consumptive behavior kills the reduce, reuse and recycle movement. The consequence of this consumptive attitude is fatal if it is not immediately changed.

6. Loss of creativity. At this time someone prefers everything that is instant. Prefer anything that is done immediately rather than appreciate a process. This is what then makes a person lazy to think and create creativity.

7. Cultural and customary values begin to erode over time. Westernized culture makes norms and customary values begin to disappear slowly but surely.

8. Information is easily confused, there are many rumors about the truth of which are not certain. The more sophisticated this communication tool is, it makes it easier for information to be conveyed to spread, whether it is information that is already clear or just hoax information.

9. It is difficult for domestic companies to develop. This is because domestic companies are losing competitiveness, losing technology to new companies from abroad entering the country.

10. The world economy is controlled by foreign companies. With developments that have started worldwide, the economy can enter and exit easily.

11. Many people start to have a bad attitude. This bad attitude that arises is due to the existence of a demand for a job that wants high prestige.

12. Many farmers have changed professions. Low harvest prices make farmers reluctant to carry out their profession, which always leads to losses.

13. Many skyscrapers are starting to appear. There has been an increase in the number of corporate hotel buildings up to the highest floors due to limited land for wider development.

14. The narrowness of agricultural land. Many agricultural lands have been evicted and purchased for settlements and business purposes.

15. The hedonism lifestyle is starting to run rampant. This hedonism life is a life that only refers to worldly needs. At this time, religious attitudes and memories of the afterlife have begun to disappear.

16. The attitude of individualism is increasingly becoming. The selfish feeling of each individual is getting bigger to face competition in the economic, social and cultural world.

Impact of Globalization in the Field of Politics

Globalization has an impact on all fields, one of which is politics. The political world is currently experiencing the positive impact of globalization, namely the thinking of political figures is better, more open, able to work better and even people's welfare has begun to increase.

The existence of a more advanced constitutional system has made several government agencies of higher quality. Not only that, public awareness of political issues is increasing.

While the negative impact is the emergence of a greedy attitude towards political office, the emergence of harmful frauds in the world of politics, and many officials who are starting to be dishonest.

The Impact of Globalization in the Economic Sector

Apart from the political sector, the economic sector also felt the impact. The positive impact that can be felt in this economic field is that the process of fulfilling all the needs for goods and services is getting easier. Sectors - small sectors of the economy also began to experience a fairly good increase.

The Effects of Globalization

Globalization is a modernization process that can have an impact on everything in all fields without exception.

The influence of globalization can be either a beneficial influence or a detrimental influence. This depends on the angle of application as well as the angle of absorption of the culture taken.

Therefore, so that the influence of globalization is not too detrimental, you must be clever in filtering out what is good and what is bad.

The influence of globalization cannot be swallowed up at once, it must be sorted and chosen which one is considered good and suitable for Indonesian culture. That way the influence of existing globalization will be able to generate benefits that certainly will not harm you.

Globalization changes the times

In the era of globalization, all aspects become advanced and begin to experience development. Just as today's era has turned into a millennial era, which has changed the children of the nation's generation to become very dependent on gadgets and their various technologies.

The existence of changing times from year to year has made a lot of changes in the world, starting from changes that can generate profits for those who do them, to changes that cause losses for the perpetrators.

Globalization has made the era of the millennial era instantaneous and to do anything it doesn't even take a long time, in just a matter of minutes everything can be done and obtained.

For example for food, or other needs if you don't have much time to go to the store or are lazy at home, just by holding a gadget with stable internet and opening an online store application, you can order and pay for it digitally.

Without having to go anywhere, all you have to do is wait for the order to be delivered by sitting pretty at home.

Technological advances in this all-online service make life more effective and feel efficient without having to be complicated and complicated.


That's a little information about the notion of globalization which is capable of causing these positive impacts, not to mention the negative impacts that are behind it.

So as an intelligent citizen, you must be very clever in filtering incoming western culture so that there are not many negative impacts.

Thus the article about Two Impacts of Globalization on the Indonesian Economy and don't forget to keep visiting the Infokekinian website.

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