THE IMPACT OF GLOBALIZATION ON INDONESIA'S ECONOMIC STRUCTURE
Keywords:
globalization, economic structure, Islamic economics, inequality, economic transformationAbstract
This study explores the impact of globalization on Indonesia’s economic structure through an Islamic economic perspective. Globalization has brought both opportunities and challenges for developing countries, including Indonesia, leading to complex shifts in national economic activity (Stiglitz, 2002). The opening of international trade, rapid technological transformation, and substantial foreign investment have accelerated overall economic growth but have also widened inequality and regional disparities between different economic sectors. Using a qualitative descriptive method with an extensive literature review, this research analyzes structural changes across the industrial, agricultural, and service sectors in direct response to increasing global economic integration. The results show that while globalization certainly promotes national efficiency and international competitiveness, it simultaneously poses threats to economic sovereignty, particularly concerning vulnerable local industries and food security. The Islamic economic framework, emphasizing Maqashid Syariah, offers a necessary alternative paradigm to balance robust global participation with mandatory social justice through ethical trade practices and equitable wealth distribution mechanisms (Fukuyama & Ahmad, 2021). This analysis provides critical insights for policymakers seeking to achieve inclusive and sustainable economic development amidst global volatility.
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