We must be able to anticipate all those risksJakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati has said that she will monitor the zero-COVID policy imposed by China in response to the rampant spread of the virus in that country.
“In China, we can also see the effects of COVID-19, which is still rampantly spreading. Its government has imposed a zero-case policy to counter the COVID-19 pandemic,” she noted at an online talk show broadcast on Monday.
The lockdown in China would not only affect its domestic economy, but also impact the global economy given the nation’s considerable international clout.
“This means that lockdown, or restriction of activities, which will very much impact the economy in China, will certainly impact the global economy given China’s sheer number and size of (its economy). We must be able to anticipate all those risks,” Indrawati said.
From the January to April 2022 period, China remained one of Indonesia’s major export destinations, with the value of goods shipped reaching US$18.20 billion, accounting for 20.52 percent of total Indonesian exports, according to the Statistics Indonesia (BPS).
China was also one of Indonesia’s largest sources of imports, with goods worth US$20.90 billion arriving in the country from China, accounting for 32.58 percent of total imports.
Besides the lockdown in China, the Russia-Ukraine conflict has been another factor behind the disruption in commodity supplies and inflation, the minister noted.
“In facing changes in the world’s economy and rapidly moving dynamics of risks, we must always practice caution and (build the) ability to respond to policies in an appropriate manner,” she said.
The government will continuously take measures to reform and build a better, resilient, and flexible economy, she added.
One of the steps toward economic reform has been the passing of the Omnibus Law on Job Creation, which aims to address challenges in Indonesia by simplifying regulations at the central or regional level.
“Of course, this aims to enable a faster, efficient service for the business sector, so they could aim for better competition,” the minister said.
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Translator: Sanya Dinda Susanti, Mecca Yum
Editor: Sri Haryati
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