Langsa- The Student Executive Board (BEM) of the Faculty of Economics, Universitas Samudra (Unsam), held a Public Lecture in the Multi-Use Building Hall on Friday (9/6/2023). The event was attended by Unsam students, particularly those from the Faculty of Economics, as well as the Coordinators of the Faculty of Economics Study Program and lecturers.
The Public Lecture featured the Inspector General of Police (Purn). Dr. H.S. Maltha, SIK., S.H., M.Si, as the speaker, with Ditiya Hermawan, S.E, serving as the moderator. The theme of the public lecture was “Challenges and Opportunities for National Economic Resilience Facing the US and China Trade War.”
The chairman of the event organizing committee, Syahrial Pane, stated that in the current era of globalization, Indonesia faces increasingly complex opportunities and challenges concerning its economic resilience. Dealing with these challenges, especially amidst the competition between the USA and China in gaining influence in the world economy and politics, requires careful consideration and strategic actions. The Public Lecture aimed to enrich and broaden students’ knowledge, particularly in world trade today.
During the event, Dr. H.S. Maltha delivered the General Lecture, covering three important topics: Geopolitics, Globalization, as well as the G7, G20, and BRICS. These topics provided valuable insights into the current global economic and political landscape.
Dr. Maltha conveyed that the concept of geopolitics involves the administration of a state, where each policy is intricately linked to the geographical area or location of a nation. Geopolitics plays a crucial role in determining alternative national policies aimed at achieving certain goals for the nation.
In the current global scenario, every nation competes to become the most influential country in the world’s political and economic arena. This pursuit of power often results in shifts in the boundaries of a country’s territory, which can lead to various upheavals and conflicts. Such geopolitical dynamics can significantly impact the global economy on a large scale.
The understanding and conception of the Geopolitics of the Indonesian nation are exemplified by the perspective of Indonesia’s territory, which stretches from Sabang to Merauke, as a unified and cohesive whole, known as the Archipelagic Outlook. As an archipelagic country with a diverse society, Indonesia upholds the principles of the Unitary State of the Republic of Indonesia, which is firmly based on the nation’s foundational beliefs of Pancasila and the 1945 Constitution.
Emphasizing unity and harmony, the Indonesian people reject expansionism and racism, recognizing that all humans possess equal rights and obligations. In its approach to International Relations, Indonesia upholds nationalism while fostering cooperation between nations to extend mutual support and benefits. This approach aims to create a harmonious world order, where nations work together for the greater good.
As an archipelagic country strategically located, Indonesia’s abundant natural resource territory presents great potential and geopolitical challenges for the nation. The rich resources offer opportunities for Indonesia’s development, but they can also pose threats, disturbances, obstacles, and challenges (AGHT) that need careful management.
Globalization, on the other hand, signifies international integration through the exchange of worldviews, production, thoughts, and cultural aspects. It involves the adaptation of economic systems, cultural practices, government policies, technology, scientific advancements, and political movements across the globe. This interconnectedness leads to an increasingly interdependent world, where nations must navigate and collaborate to address shared issues and opportunities.
Globalization allows the entry of various external influences, such as dominating products from other countries and aspects of foreign cultures. This can have both positive and negative impacts. Positive impacts include an open government system, democracy, economic growth, increased work productivity, and social movements within communities.
Meanwhile, the negative impact can trigger economic disparities and cultural clashes in society. How does globalization influence Indonesia? In the economic field, it affects trade, production, and investment. In the political field, it involves ambassador placement and political cooperation with UN and ASEAN members. In the cultural sector, it leads to the entry of various cultures, requiring careful consideration in selecting incoming cultural influences.
“The younger generation, as the nation’s successors, must remain vigilant and act wisely in dealing with the potential detrimental impacts of globalization on our country, especially when following trends and adopting foreign cultures. The entry of foreign products and cultures should be filtered carefully, embracing only those that align with our nation’s culture. Furthermore, we must always uphold manners, ethics, and morals, as these values are fundamental to our Indonesian culture,” emphasized Maltha.
“Additionally, we should promote the love and use of domestic products, fostering their development and increasing innovation to advance their quality. Utilizing our knowledge and skills, we possess numerous high-quality products that can be just as competitive as foreign offerings, elevating our economic value in the process.”
He further elaborated on the influence of globalization in the political field, specifically regarding the G7 and BRICS. The G7 is a discussion forum for developed countries to address global issues, comprising seven nations (America, Britain, France, Germany, Japan, Italy, and Canada). It was formed in response to the oil crisis that affected the world in 1970.
On the other hand, the BRICS was initially formed in 2009 in Russia, consisting of members from Brazil, Russia, India, and China. In 2011, South Africa joined, transforming it into BRICS. The primary purpose of BRICS is to discuss global economic conditions. Notably, the BRICS countries have de-dollarized their currency, emphasizing the use of local currencies in their transactions.
Both the G7 and BRICS play significant roles in shaping the global political and economic landscape, and their discussions and decisions have far-reaching implications for countries around the world.
The G20 was established in September 1999 as an economic forum aimed at addressing global economic and financial crises, with Indonesia and China among its member countries. The G20 comprises 20 nations, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, and the European Union.
In 2021, Indonesia was appointed as the G20 Presidency. Subsequently, in 2022, the G20 Summit will be hosted in Bali. Following this, in 2023, the G20 presidency will be handed over to India.
As a prominent platform for economic cooperation and global governance, the G20 plays a crucial role in shaping policies and addressing pressing economic challenges faced by member countries and the world as a whole.
In 2021, the United States experienced high inflation due to a balance of payments deficit, causing global uncertainty. As a response, several countries, including Indonesia, opted to de-dollarize, meaning they increased the use of their local currencies and reduced dependence on the US dollar.
For Indonesia, de-dollarization offers several advantages. Firstly, it helps increase the stability of the Rupiah, the national currency. Additionally, it fosters closer trade relations with ASEAN countries and saves on trade costs, while also providing a buffer against currency fluctuations.
Concurrently, China is actively expanding its influence by inviting other nations to join the BRICS. As more countries become part of BRICS, there is a potential to decrease the dominance of the US dollar in international trade. This shift could have repercussions on diplomatic and trade relations between the US and Western countries.
By de-dollarize and increasing involvement in initiatives like BRICS, Indonesia, and other countries seek to diversify their currency options and establish greater economic independence in the global arena. (Humas Unsam)