The global economic crisis has had a broad impact on the world economy, ranging from financial market vulnerability to a decline in people’s purchasing power. In the Indonesian context, this crisis has encouraged the government and various parties to implement strategic recovery efforts. Detailed analysis shows that the Indonesian economy is not immune from this impact. The impact of the global economic crisis on the Indonesian economy includes a decline in exports, increased unemployment, and fluctuations in the rupiah exchange rate. When trading partner countries experience a recession, demand for Indonesian commodities decreases, affecting state income. The increase in the unemployment rate was exacerbated by many companies being forced to lay off workers due to falling income. Exchange rate fluctuations are also a challenge, where the depreciation of the rupiah causes import costs to increase, creating inflation which can affect people’s purchasing power. Recovery efforts must involve fiscal and monetary consolidation measures. In this case, Bank Indonesia (BI) can adjust interest rates to encourage investment and consumption. Reducing interest rates is one strategy to increase liquidity and facilitate access to credit for Small and Medium Enterprises (SMEs), which play a significant role in employment. The government also needs to target economic stimulus through infrastructure spending, which not only creates jobs but also increases long-term productivity. Coordination between central and regional governments is essential to ensure effective policy implementation. Social assistance programs are one of the focuses in reaching vulnerable groups who are directly affected, such as informal workers. Strengthening social protection programs is a crucial step in supporting people’s purchasing power. Apart from that, efforts to promote digitalization in the economic sector can also address emerging challenges. By expanding access to technology, small businesses can reach a wider market without having to depend on a physical location. Training and improving digital skills are important programs to improve HR capabilities. Innovation and product diversification are strategies that are no less important. Encouraging SMEs to create unique and value-added products helps Indonesia compete in the global market. Improving the quality of human resources through continuous education and training is expected to increase the competitiveness of local products. International cooperation is also important in this regard. Indonesia can collaborate with other countries to share knowledge and experience in dealing with the impact of the crisis. A joint action plan to increase trade between countries could also be a solution. By taking strategic steps, well managed and supported by all parties, post-crisis economic recovery is not impossible. Implementing well-targeted and innovative policies will be the key to restoring the Indonesian economy and ensuring its growth is sustainable.
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