Global trade has a significant impact on the Indonesian economy. As a country located on international trade routes and rich in natural resources, Indonesia exploits this potential to increase its economic growth. One of the main impacts of global trade is the increase in exports and imports of goods which affects the trade balance. Increased exports, especially agricultural, mineral and manufacturing products, have contributed directly to state income and created new jobs. Products such as palm oil, rubber and coffee have become leading commodities that penetrate the international market. In recent years, Indonesia’s exports to countries such as China, the United States and Japan have continued to show a positive trend. However, this positive impact is also accompanied by challenges. Dependence on exports makes Indonesia vulnerable to global price fluctuations. When commodity prices fall, for example, many local producers are affected, lowering incomes and affecting the economy as a whole. In addition, international trade policies, such as tariffs and quotas, can hinder Indonesia’s ability to compete in the global market. Imports of goods also have an impact on the Indonesian economy. Although imports can meet domestic needs, especially capital goods and technology, excess imports can cause a trade balance deficit. This situation can affect the rupiah exchange rate and economic stability. Therefore, it is important for the government to establish a balanced policy between promoting exports and managing imports. Foreign direct investment (FDI) is an important aspect of global trade that has a positive impact on the Indonesian economy. FDI brings new technology, improves workforce skills, and accelerates the growth of the industrial sector. Sectors such as automotive, electronics and tourism show rapid growth thanks to foreign investment. Apart from that, global trade can increase the competitiveness of Indonesian products. Higher international standards force local manufacturers to improve product quality. Skills training and adoption of new technologies in production are crucial for success in international markets. Social impacts must also be considered, especially those related to economic inequality. While some sectors are experiencing rapid growth, others may be neglected. Global trade can widen the gap between developed and remote areas. Therefore, it is important for governments to implement inclusive policies, ensuring that the benefits of trade are felt by all levels of society. The Indonesian government must also take advantage of existing free trade agreements (FTAs) to expand market access. FTAs help reduce tariffs and other trade barriers, creating opportunities for Indonesian products to compete better in global markets. Collaboration with ASEAN countries also provides strategic opportunities to increase trade volume. It can be concluded that global trade has a complex impact on the Indonesian economy. Even though it offers many opportunities, such as export growth, investment, and increased competitiveness, challenges such as price fluctuations, trade deficits, and social inequality also need to be considered. Wise and strategic policies are needed to ensure that Indonesia can maximize global trade potential while minimizing risks.