Can Indonesia balance globalisation with economic populism?

Is Indonesia protectionist? “No,” insists President Joko Widodo, responding to a question about whether the nation is experiencing a spate of economic nationalism.

Perhaps this diversity and openness to trade and exchange contribute to Indonesians’ embrace of globalisation: a 2016 international poll found that 72 per cent of Indonesians agreed with the statement that globalisation is “a force for good” – one of the highest percentages of any country. In addition, a 2017 Australian-led survey found that 53 per cent of Indonesians polled “favour” international trade agreements, while 20 per cent opposed them and 28 per cent took a neutral position.

With subnational elections this week and a general election on the docket for 2019, a key question for observers and the Indonesian electorate is: does the Widodo government embrace globalisation as much as most Indonesians express in polls? Jakarta strives to balance globalisation with an inclusive domestic economy that benefits more than a minority of the population. Still, the looming threat of a populist electoral backlash is all too real, and a recent Council on Foreign Relations report warns that “Indonesia risks political instability if it cannot foster greater economic and social inclusion”.