Sunday, 18 August 2013

Geo-Economics: New Perspectives for Indonesian Business

In a world where physical war and territorial colonization are no longer a threat, countries should still maintain their global power and ensure their sovereignty is not jeopardized by other nations. Many countries, such as China and Germany, manage to maintain their power by using international trade.

And where is Indonesia? Indonesia is a country that is still dependent on outsourced products. China’s products, for example, have dominated our market for many years. We even import commodities such as rice from Cambodia and soybeans from the US meanwhile we have the potential of producing ourselves.

This dependency, this economic weakness, provides inroads to other nations to impose their interests in our country. Japan does not need to colonize Indonesia with military power like in the past; it instead saturates our market (and indeed many other countries in the world) with its automotive products. In order to exert stronger political capital in international relations, Indonesia’s geopolitics should actively involve the economic sector in foreign policy.

Gone are the days when we oppress other countries with guns or military attacks. We can simply use the power of the national economy. This is what we call geo-economics, which means that to be strong and influential in this world, we must have the ability to create the products needed by the world — at affordable and competitive prices. Through this approach, we can make other countries depend on our products and then influence them politically.

In this age of geo-economics, where do our businesses stand? In the view of businesspeople — what does Indonesia look like? Currently, they treat Indonesia as nothing but a place for buying, selling or trading products and exploiting natural resources. In the geo-economic sphere, we should see Indonesia as place of production where we can provide a plethora of products for other countries.

Indonesia as a state should maximize our agricultural production since our land characteristics suit this sector — and not only to fulfill our domestic needs but on a global scale.

We should take an active part in the production of the real sector, such as manufacturing and services to counterbalance the practices of foreign geo-economics. Thus, there is a need for more room for industry to be built and infrastructure to be revitalized. But, is it that easy? What factors are hampering our businesspeople?

We recognize that our businesspeople cannot work alone — they need the government’s support, for example, the creation of better infrastructure by the Public Works Ministry is crucial. Both the government and businesses have to work harder — and together. This understanding of geo-economics will not only lead to profit but also benefit our global power.

This new perspective of geoeconomic is the solution for our geopolitical problems. (rt)

http://www.thejakartapost.com/news/2012/09/25/new-perspective-indonesian-business.html

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