"If we look at the contribution, both exports and imports are not too big with the two countries," Yuwono said during a virtual press conference in Jakarta on Tuesday.
Indonesia's trade with Russia in 2021 recorded a surplus of US$239.8 million. Meanwhile, trade in January–February 2022 experienced a deficit of US$15 million.
According to Yuwono, Indonesia's exports to Russia contributed only 0.65 percent to national exports. Meanwhile, the contribution of imports was only 0.64 percent.
Meanwhile, in January–February 2022, the contribution of exports to Russia was only 0.84 percent and imports was 1 percent.
Meanwhile, Indonesia's trade with Ukraine during 2021 experienced a deficit of US$623.9 million. Meanwhile, Indonesia-Ukraine trade in January–February 2022 also recorded a deficit of US$6.9 million.
"The contribution of Indonesia's exports to Ukraine in 2021 was 0.18 percent. Imports were 0.53 percent. Cumulatively, in January–February 2022, Indonesia's total exports to Ukraine were 0.07 percent and imports were 0.10 percent," Yuwono said.
The state budget deficit will potentially widen in 2022 due to the Russia-Ukraine conflict, Institute for Development of Economics and Finance (Indef) economist Eisha M. Rachbini predicted earlier.
"Looking ahead, if oil price persistently hovers at a high level of above US$100 per barrel and essential commodity prices increase, the government will likely conduct price intervention, provide subsidies and social assistance, which will eventually put pressure on the state budget deficit," he said.
Each US$1 per barrel rise in the Indonesian crude price (ICP) will raise the liquefied petroleum gas (LPG) subsidy by Rp1.47 trillion, kerosene subsidy by Rp49 billion, compensation to state oil and gas firm Pertamina by Rp2.65 trillion, and electricity subsidy by Rp295 billion, he projected.
In the meantime, state revenues from tax receipts and non-tax state revenues will increase by Rp0.8 trillion and Rp2.2 trillion, respectively, so the budget deficit could potentially widen, Rachbini said.
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The government is expecting the 2022 state budget deficit to reach Rp868 trillion, or 4.8 percent of the national gross domestic product (GDP), he noted.
"The state budget needs to be managed accurately and efficiently by prioritizing economic recovery, maintaining the people's purchasing power and economic growth," he said.
The government also needs to increase subsidies to maintain the purchasing power of the community, particularly low- and middle-income people, to prevent them from falling into deeper poverty, he said.
"The future risk is that inflation threat may lower the purchasing power of the community and may have the risk of impeding economic growth," he said.
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Translator: Sella P, Azis Kurmala
Editor: Rahmad Nasution
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