STRATEGIC ASSESSMENT-Jakarta. The world has been facing crisis above the crisis. Covid-19 pandemic has not been done then the world has faced Russia-Ukraine war, which can trigger food and energy crisis around the globe.
Indonesia’s finance minister, Sri Mulyani Indrawati said Indonesia must be anticipated global economic crisis, eventhough Indonesia so far do not have significant impacts comparing with others countries in South America until Africa.
“Disruption supply must be continuously anticipated, because this is not short term crisis but structurally crisis at global level,” Sri Mulyani explained it at meeting with the House of Representative in Jakarta (31/5/2022). “Indonesia must be capable to cut supply disruption risk especially at food and energy through state budget and non state budget strategy,” she assured.
Several commodities must be attentioned such as soybeans, wheat, cooking oil and shallots at food sectors, and oil, electricity, LPG, natural gas and coal at energy sectors.
“Every countries are understand that crisis during pandemic, and geopolitical crisis have been created energy crisis, food crisis and monetary crisis around the world. Crisis above crisis,” ex former World Bank Managing Director explained.
“Global economic growth proyection in 2023 by IMF have corrected to 3,6% level (IMF WEO, April 2022) due to geopolitic conflict which can predict long term impacts on world trade activities,” Sri Mulyani said further.
Inflations has raised because it was triggering by monetary tightens policy by several countries such as the United States which has been increasing progressively interest rate following with several countries in Europe and South America. Global money market has shocked, which has created capital outflow and hit currency rate and foreign debt burden.
According to, Economic Global head at Economist Intelligence Unit, Simon Baptist said economic recession does not come in next short time, but cost increase and slowly economic growth. “There is not happen suddenly economic stagflations,” he said to CNBC International, (31/5/2022). Meanwhile AMP capital economic chief, Shane Oliver said economic recession does not happen until 18 months later (Red/many resources).