Currently, we are facing a real global dynamics
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati drew attention to three major threats to the global community in the form of climate change, monetary policy normalization, and stricter market liquidity.

"Currently, we are facing a real global dynamics," the minister noted during the House of Representatives' plenary meeting here on Tuesday.

Indrawati stated that normalization of the financial policy, especially in the monetary sector, was conducted in response to rampant inflation due to the rising commodity prices.

Normalization of the monetary policy and imposition of stricter market liquidity had caused disruption globally, including in Indonesia.

"Supply chain disruptions that arise due to increasing geopolitical (tensions) are a matter of concern, and we must be aware of them," he cautioned.

The conflict between Russia and Ukraine had worsened the current global geopolitical situation, which in turn posed a threat of crises, ranging from energy to food and finance.

The United Nations had also formed a group to anticipate those three potential global crises.

The minister emphasized that Indonesia should be able to respond to those global issues in an effective and efficient manner.

She believed that the government will be able to surmount the global issues, as the efforts made to tackle the crises, such as the health crisis due to the COVID-19 pandemic, were starting to show good results.

Those efforts to address the pandemic issue had resulted in an increase in domestic economic activity.

The implementation of macro-fiscal policies through good state budget planning would enable the government to adjust the pace of economic recovery, which was not an easy feat.

Indonesia was able to achieve an economic growth of 5.01 percent in the quarter, followed by China, at 4.8 percent; Germany, 3.7 percent; South Korea, 3.1 percent; and Singapore, 3.4 percent.

The improvement was also backed up by the stabilization of the price level or inflation, which was recorded at 0.95 percent (mtm) or 3.47 percent (yoy) in April 2022.

"Indonesia's inflation rate is still within the target range of three percent, give or take one percent, and far below the global inflation rate, which has also reached double digits," the minister concluded.

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Translator: Astrid F H, Mecca Yumna
Editor: Sri Haryati
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