People shop at a market in Aceh, Indonesia. (Photo: AFP) Jakarta (VNA) – IndonesianCoordinating Minister of Economic Affairs Airlangga Hartarto has highlightedseveral risks arising from the unstable geopolitical situation that will affectthe largest economy in Southeast Asia.
The recent uncertain geopolitical situation in theMiddle East and the ongoing conflict in Ukraine also add to theinstability, he said at a press conference in Jakarta on November 6.
Airlanggasaid that the Indonesian government is keeping a close watch on the situation and willkeep trying to mitigate the risk arising from the conflict in the Middle East.
Hepredicted that this ongoing escalation will affect the prices of manycommodities, including oil, adding that as global economic growth is slowingdown, the effect of the price surge will be felt strongly.
Airlangga also mentioned El Nino as a challengeto global economic growth.
Earlier,Finance Minister Sri Mulyani Idrawati said that the world is facing a highlyvolatile phase, with China, the US, and Europe trying to control theirrespective economic state.
Thiswill impact the whole world since these three influence more than 40%of the world, she said during a coordinating meeting for inflation control inJakarta on November 6.
Accordingto Idrawati, the high level of inflation in the US is causing a worldwide currencydepreciation while China's economy is in recession, thereby affectingcommodities’ prices with a decrease in consumer demand. The conflict in Ukraineand the risk of widespread conflict in the Middle East will slow down the globaleconomy, she noted.
Indrawatiemphasised that Indonesia must be vigilant against the geopolitical conditions thatcome in waves, causing the economy of the world’s fourth most populous country toslow down despite recovering well from the COVID-19 pandemic./.
