Globalisation involves the process of increased integration between different countries and economies, and the increased impact of international influences on all aspects of life and economic activity. Globalisation cannot be avoided today and prior to the Asian financial crisis, Indonesia has achieved significant economic successes in the period of globalisation. Globalisation has also resulted in dramatic changes, both positively and negatively in the Indonesian economy in terms of trade (exports and imports), inflation rate, foreign investment and transnational corporations.

International trade in Indonesia has started to see some improvement. Exports grew in April 2002 after over a year of contractions and import growth became positive in July 2002 for the first time in a year. Most of the growth in exports is due to the increase of exports of machinery and electrical products. The value of Indonesia's exports in April 2002 reached US$4.77 billion and the value of Indonesian imports in...