GLOBALIZATION, STRENGTHENING OF INDONESIAN LOCAL MARKET CHARACTER AS CONSEQUENCES AND REALITY OF OPEN ECONOMIC SYSTEM

Purpose of Study: Globalization impacts of advances in science, technology and information. Any country in the world including Indonesia can not avoid globalization. There is no time limit, space and territory. There is a pull of two concepts of economic development. Economic growth (Capitalism) or welfare economy (Socialism), or a mixture of both (mixs). Indonesia adheres to the mix. Natural resource wealth is not enough. More important is the quality and character of Indonesia’s strong human resources. Methodology: The growth of goods and services, there are three aspects of character change to improve the welfare of the Indonesian nation; (1) the number of literacy (education); (2) life expectancy (health), and (3) ability of purchasing power (income). Government development and regulatory policies; (1) allocation; (2) distribution; And (3) stabilization is intended solely for income distribution and reducing economic disparities. Result: Exploitation and exploration of production factors, production efficiency, capitalization of capital and market expansion is the impact of globalization. Globalization and the strengthening of local market traits are indications of the consequences of Indonesia’s open economic system. Implications/Applications: The impact of the economic crisis lies not on globalization itself, but lies in the Indonesian national identity itself in addressing Globalization.