Indonesia's economic resilience through Resource Diversification: an overview from a national resilience perspective

Introduction: The global economic crisis had an impact on the Asian financial crisis of 1997-1998, the global financial crisis, until the COVID-19 pandemic, became an indicator of how vulnerable the economic structure of many countries, including Indonesia, to external shocks. Economic diversification is a Non-military defense that plays an important role as a preventive and adaptive element in the face of unconventional threats. Methodology: This study uses a mixed methods approach with 480 respondents consisting of MSME actors 40%, local governments 15%, community leaders 25%. Data collection instruments include questionnaires, interview guidelines, and observation sheets. Results: The highest level of resilience is West Java 78% and South Sulawesi 70% because it has a diverse economic base and strong supporting infrastructure. The results of diversification factor analysis proved to be the dominant factor affecting the durability of the region with a reliability value of Cronbach's Alpha > 0.7, showing the reliability of the construct is very good. Discussions: a planned diversification strategy, supported by policies and infrastructure, has proven to increase the region's resilience to economic crises. Conclusions: Indonesia's economic resilience is largely determined by the level of diversification of economic sectors, adaptability of business actors, and institutional and infrastructure support. Suggestions for the government can prioritize economic diversification policies in strategic planning, strengthening supporting infrastructure and community economic literacy.

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Publication Details

Journal
European Public & Social Innovation Review
Published
2025-08-28
DOI
https://doi.org/10.31637/epsir-2026-2147
Primary Topic
Natural Resources and Economic Development
Type
article
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article

Indonesia's economic resilience through Resource Diversification: an overview from a national resilience perspective

Dhiana Puspitawati, Hilmy Aliriad, Farida Hidayati
European Public & Social Innovation Review
Natural Resources and Economic Development
article

Indonesia's economic resilience through Resource Diversification: an overview from a national resilience perspective

Dhiana Puspitawati, Hilmy Aliriad, Farida Hidayati
article en

Abstract

Introduction: The global economic crisis had an impact on the Asian financial crisis of 1997-1998, the global financial crisis, until the COVID-19 pandemic, became an indicator of how vulnerable the economic structure of many countries, including Indonesia, to external shocks. Economic diversification is a Non-military defense that plays an important role as a preventive and adaptive element in the face of unconventional threats. Methodology: This study uses a mixed methods approach with 480 respondents consisting of MSME actors 40%, local governments 15%, community leaders 25%. Data collection instruments include questionnaires, interview guidelines, and observation sheets. Results: The highest level of resilience is West Java 78% and South Sulawesi 70% because it has a diverse economic base and strong supporting infrastructure. The results of diversification factor analysis proved to be the dominant factor affecting the durability of the region with a reliability value of Cronbach's Alpha > 0.7, showing the reliability of the construct is very good. Discussions: a planned diversification strategy, supported by policies and infrastructure, has proven to increase the region's resilience to economic crises. Conclusions: Indonesia's economic resilience is largely determined by the level of diversification of economic sectors, adaptability of business actors, and institutional and infrastructure support. Suggestions for the government can prioritize economic diversification policies in strategic planning, strengthening supporting infrastructure and community economic literacy.

European Public & Social Innovation ReviewVol. 11
University of Brawijaya (ID), Universitas Sunan Giri (ID)
Openalex Percentile: Top 64%
Natural Resources and Economic Development
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Indonesia's economic resilience through Resource Diversification: an overview from a national resilience perspective — Dhiana Puspitawati, Hilmy Aliriad, et al. · European Public & Social Innovation Review (2025) | TGRS Research Map | TGRS