The Impact of Global Inflation on the Indonesian Economy Global inflation is a phenomenon that affects economies throughout the world, including Indonesia. Several factors causing global inflation, such as surging energy prices and supply chain disruptions, are contributing to changes in economic structure. Indonesia, as a developing country, feels a significant impact which is reflected in various sectors, from household consumption to investment. One of the main impacts of global inflation is the increase in prices of goods and basic necessities. Indonesia, which relies on imports of many commodities, faces the risk of rising living costs. The increase in oil and food prices on the international market has a direct impact on domestic prices. This causes inflation in the cost of living, which increases the burden on society, especially low-income people. Global inflation also has an impact on the rupiah exchange rate. When inflation skyrockets, foreign investors may withdraw their capital in the hope of getting better returns in other countries. This can lead to depreciation of the rupiah, making imported goods more expensive and worsening inflation. This situation forced Bank Indonesia to take monetary policy steps, such as raising interest rates, to restrain the rate of inflation. On the other hand, inflation can affect people’s purchasing power. When the price of goods rises, people’s purchasing power decreases, affecting several sectors such as retail and automotive. A decline in domestic consumption has the potential to hamper economic growth and increase unemployment rates. In response, entrepreneurs may suspend business expansion or reduce investment. The industrial sector also feels the direct impact of global inflation. Increasingly expensive raw materials cause production costs to increase. Many businesses are forced to choose between absorbing additional costs or increasing the prices of their products. An increase in product prices can result in a decrease in demand, which in turn has an impact on long-term economic growth. The agricultural sector in Indonesia is also not immune from the impact of global inflation. Increases in fertilizer prices and transportation costs can reduce agricultural productivity. Limited access to technology and resources makes it difficult for farmers to compete. This could threaten national food security, especially amidst increasing demand. The Indonesian government is trying to overcome the impact of inflation with a number of strategies. The food and energy subsidy program was created to ease the burden on society. Efforts to diversify food sources are also encouraged to reduce dependence on imports. In addition, strengthening the local agricultural sector is considered an important step for economic stability. In conclusion, the impact of global inflation on the Indonesian economy is very complex and affects many aspects. Rising prices of goods, depreciating exchange rates, and reducing people’s purchasing power are some of the main challenges faced. Cooperation between government, industry players and society is needed to overcome this challenge effectively. Efforts to increase economic resilience and create more stable conditions are the key to dealing with global inflation in the future. By implementing proactive and innovative policies, Indonesia can strengthen the foundations of its economy amidst global inflation challenges.