People shop at a market in Aceh, Indonesia. (Photo: AFP) Jakarta (VNA) – Indonesian Coordinating Minister of Economic Affairs Airlangga Hartarto has highlighted several risks arising from the unstable geopolitical situation that will affect the largest economy in Southeast Asia.
The recent uncertain geopolitical situation in the Middle East and the ongoing conflict in Ukraine also add to the instability, he said at a press conference in Jakarta on November 6.
Airlangga said that the Indonesian government is keeping a close watch on the situation and will keep trying to mitigate the risk arising from the conflict in the Middle East.
He predicted that this ongoing escalation will affect the prices of many commodities, including oil, adding that as global economic growth is slowing down, the effect of the price surge will be felt strongly.
Airlangga also mentioned El Nino as a challenge to global economic growth.
Earlier, Finance Minister Sri Mulyani Idrawati said that the world is facing a highly volatile phase, with China, the US, and Europe trying to control their respective economic state.
This will impact the whole world since these three influence more than 40% of the world, she said during a coordinating meeting for inflation control in Jakarta on November 6.
According to Idrawati, the high level of inflation in the US is causing a worldwide currency depreciation while China's economy is in recession, thereby affecting commodities’ prices with a decrease in consumer demand. The conflict in Ukraine and the risk of widespread conflict in the Middle East will slow down the global economy, she noted.
Indrawati emphasised that Indonesia must be vigilant against the geopolitical conditions that come in waves, causing the economy of the world’s fourth most populous country to slow down despite recovering well from the COVID-19 pandemic./.
