The Impact of Government Policy on Economic Stability in the Era of Globalization

Abstract

This study aims to analyze the impact of government policies on Indonesia's economic stability in the era of globalization using a descriptive qualitative approach. Globalization has encouraged economic openness, which has created opportunities and challenges for Indonesia in maintaining its competitiveness and national economic resilience. Data was obtained through in-depth interviews with government officials, academics, and economic actors, as well as analysis of fiscal, monetary, and international trade policy documents. The results of the study show that fiscal policy plays a role in maintaining people's purchasing power through stimulus and government spending, although its effectiveness is still limited due to the inaccuracy of subsidy targets and budget realization. Monetary policy has proven to be capable of controlling inflation and maintaining exchange rate stability, but it is still reactive to external pressures. While international trade policies have great potential to increase exports and investment, they are constrained by bureaucracy and inconsistent regulations. Further analysis confirms that national economic stability can only be achieved through the harmonious integration of fiscal, monetary, and trade policies, accompanied by adaptive governance and strong inter-agency coordination. The conclusion of this study confirms that the effectiveness of economic policy in the era of globalization requires consistency, synergy, and a long-term orientation in order to strengthen the national economy's resilience to global pressures.