The impact of global inflation on the Indonesian economy has various aspects that need to be analyzed in depth. Inflation that occurs at the global level, often triggered by factors such as spikes in energy prices, instability in the supply of goods, or tight monetary policies in large countries, has significant implications for the Indonesian economy. One of the direct impacts of global inflation is an increase in the prices of imported goods. Considering that Indonesia is a country that imports raw materials and capital goods which are vital for the industrial sector, this price increase could have an impact on production costs. This increase in production costs in turn has the potential to encourage producers to increase selling prices, which contributes to domestic inflation. This is especially felt in the food and energy sectors, where global price fluctuations can affect people’s purchasing power. Global inflation also has the potential to affect the rupiah exchange rate. When inflation increases in other countries, investors tend to look for financial instruments that provide comfort, which can lead to capital outflows from Indonesia. A decrease in foreign investment and strengthening of the foreign currency can cause a depreciation of the rupiah exchange rate, which in turn increases the price of imported goods and worsens domestic inflation. Furthermore, the impact of global inflation on Indonesia’s financial sector is also a major concern. When large countries like the US or the Eurozone experience high inflation, they tend to increase interest rates to control inflation. This increase in interest rates often pulls capital out of emerging markets, including Indonesia, which can tighten liquidity conditions in the country. In this situation, banks in Indonesia may be more careful in providing credit, which could slow economic growth. Global inflation conditions also influence the policies of the Indonesian government and central bank. To overcome the impact of inflation, Bank Indonesia may attempt to adjust the benchmark interest rate. However, this step must be considered carefully, considering that increasing interest rates could burden the real sector, especially micro, small and medium enterprises (MSMEs) which are still the backbone of the economy. On the other hand, the problem of global inflation could be an opportunity for several sectors, such as exports. If the rupiah depreciates due to global inflation, Indonesian goods could become more competitive on the international market. This can bring benefits to the export sector, encourage economic growth and create new jobs. However, the government must also pay attention to the social impact of inflation, especially for low-income people. An increase in the price of basic necessities can cause pressure on households, which has the potential to increase poverty rates. Therefore, social intervention and inflation control policies are very important to maintain economic stability. Overall, global inflation has a broad and complex impact on the Indonesian economy. From increasing production costs to adjusting monetary policy, every aspect needs to be managed carefully to maintain economic balance. Stakeholders, both government and the private sector, need to work together to face this challenge in order to create a more resilient and sustainable economy.