Economic nationalism has become a major theme in political policy in Indonesia, particularly as a tool for strengthening political legitimacy. In this context, economic nationalism is used to mobilize public support, protect domestic industries, and enhance the nation’s economic independence. This article is based on the journal titled “Economic Nationalism for Political Legitimacy in Indonesia,” which examines how economic nationalism is implemented in Indonesian political policies and how it contributes to political stability.
What is Economic Nationalism?
Economic nationalism is a concept where the government focuses on developing and protecting the domestic economy, often prioritizing national interests over international interests. This involves various policies such as protectionism, restrictions on foreign investment, and promotion of local products. In Indonesia, economic nationalism is often linked with efforts to reduce dependence on the global economy and strengthen Indonesia’s position on the international stage.
History and Development of Economic Nationalism in Indonesia
Economic nationalism in Indonesia has deep historical roots, dating back to the colonial era. During that time, economic nationalism emerged as a reaction against Dutch colonial economic dominance that exploited Indonesian resources without benefiting its people. After independence, economic nationalism remained an integral part of national development policies, especially under President Sukarno’s era with the introduction of the concept of “berdikari” or self-reliance.
During the New Order era under President Suharto, economic nationalism transformed with a greater focus on economic development through international cooperation and foreign investment, albeit with strict government control. However, after the 1998 reform era, economic nationalism re-emerged in Indonesian political discourse, particularly as a response to globalization and neoliberalism, which were perceived as threatening national economic sovereignty.
Economic Nationalism in Contemporary Government Policies
In recent decades, the Indonesian government has used economic nationalism as a tool to strengthen political legitimacy, particularly amid increasing public dissatisfaction with economic injustice and social inequality. Here are some economic nationalism policies adopted by the Indonesian government:
- Protectionism and Local Industry Policies: The Indonesian government has implemented various protectionist policies to shield domestic industries from international competition. This includes tariff policies, subsidies for certain industries, and import restrictions on specific products. These measures aim to enhance the competitiveness of local products in both domestic and international markets.
- Control of Natural Resources: A key aspect of economic nationalism is the control and management of natural resources by the state. The Indonesian government has taken steps to ensure that natural resources such as oil, gas, and minerals are managed by national companies or through partnerships that benefit the nation.
- Strengthening the MSME Sector: Micro, Small, and Medium Enterprises (MSMEs) are the backbone of Indonesia’s economy. The government has launched various programs to support and strengthen MSMEs, including easier access to credit, training, and technical assistance. This not only helps improve the economic welfare of the people but also strengthens the government’s political legitimacy by demonstrating their commitment to economic empowerment.
- Energy and Infrastructure Policies: The Indonesian government is also focusing on infrastructure and energy development to support long-term economic growth. Through massive investments in infrastructure such as highways, ports, and power plants, the government aims to enhance connectivity and economic efficiency.
Impact of Economic Nationalism on Political Legitimacy
Economic nationalism has proven to be an effective tool for strengthening political legitimacy in Indonesia. By promoting economic independence and protecting national interests, the government has succeeded in garnering support from various segments of society, including those who feel marginalized by globalization. Additionally, economic nationalism helps create a strong national narrative, uniting the people under a common goal of achieving sustainable economic prosperity.
However, economic nationalism also faces challenges. Protectionist policies, for example, can hinder long-term economic growth if not balanced with increasing the competitiveness of domestic industries. Moreover, control of natural resources by the state must be conducted with transparency and accountability to prevent corruption and misuse of power.
Conclusion: The Future of Economic Nationalism in Indonesia
Economic nationalism will continue to be an important aspect of political policy in Indonesia, especially in the context of increasingly complex globalization. However, for economic nationalism to maximize its benefits for the Indonesian people, the policies adopted must be based on fair, inclusive, and sustainable principles. The government needs to continuously adapt to global dynamics while ensuring that national interests are preserved. Thus, economic nationalism can serve as a solid foundation for sustainable economic development and political legitimacy in Indonesia.
Link Journal : https://scholar.unair.ac.id/en/publications/economic-nationalism-for-political-legitimacy-in-indonesia