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View all search resultsResearchers from the Center for Strategic and International Studies (CSIS) have called on the government to pursue strategic diversification to shield Indonesia from heightened global risk.
esearchers from the Center for Strategic and International Studies (CSIS) have called on the government to pursue strategic diversification to shield Indonesia from the risks that come with heightened global uncertainty.
“We view strategic diversification as a win-win option, because it neither forces our country to weaponize its foreign economic policies nor to isolate itself [from the international community],” CSIS Indonesia economic expert Dandy Rafitrandi said during a panel discussion on Tuesday.
Muhammad Habib Abiyan Dzakwan, an international relations researcher at CSIS Indonesia, added that being strategic meant being “well-calibrated, with clear objectives and alignment among goals, methods and resources”. Meanwhile, diversification meant “reducing asymmetric dependence on any single partner, product or platform”.
This approach was particularly relevant in facing external crises, including the impact of the United States-Israeli war on Iran, which has caused global disruptions and affected Indonesian trade policies, domestic industries and the country’s appeal for foreign investment.
In its study, CSIS suggests that diversification be implemented strategically across the sectors of energy, food, manufacturing and technology.
Read also: Indonesia may face rising instability in 2026: CSIS
Indonesia’s export structure remains heavily concentrated on a limited number of trade partners, which could pose a risk in the face of rising global tensions and a weakening multilateral trade system.
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