Jakarta –
The recent heated geopolitical conditions between Russia and Ukraine are feared to trigger World War 3 because it drags the United States (US) and Europe. This is also what the Minister of Finance is wary of Sri Mulyani Indrawati because the effect could be to Indonesia.
“What we have to pay attention to recently is geopolitics because what happened was like Russia with Europe, NATO and the United States (US) in Ukraine,” Sri Mulyani said in a working meeting with Commission XI of the Indonesian House of Representatives, Thursday (27/1/2022).
The issue of Russia and Ukraine involves not only territorial claims, in this case Crimea which was annexed by Russia in 2014, but also the hegemony of Russia and the West.
Since the revolution that occurred in the same year, which removed the country’s pro-Russian leader, Ukraine has grown closer to the West. Even Ukraine intends to become part of NATO.
Here are three facts:
1. Global Market Unstable
The country’s tensions trigger instability in global markets. Russia’s main stock indexes fell and the central bank stopped buying foreign currencies after the ruble slumped.
2. Effect to RI
If this condition continues, it could affect commodity prices, especially energy. Indonesia as an importer of fuel oil (BBM) will be heavily affected by the state budget.
“This has a direct impact on energy, gas and oil commodities,” he said Sri Mulyani Indrawati.
3. Geopolitics
Another geopolitical concern Sri Mulyani Indrawati is between China and the US. Recently the United States (US) government plans to allow its diplomats who are in China to leave the country.
“This is all that we will manage in 2022. The impact does cause complications in our policy environment,” said Sri Mulyani.
(aid/ara)
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