Jokowi calls for shared understanding of global turmoil

Jokowi calls for shared understanding of global turmoil

Screenshot of President Joko Widodo during his speech at the 2021 Central Government Financial Report (LHP LKPP) at the Bogor Presidential Palace, West Java, Thursday, June 23, 2022. (ANTARA/Indra Arief/rst)

This situation must become our common understanding
Jakarta (ANTARA) - President Joko Widodo (Jokowi) pressed for shared understanding from all parties over the current world economic and political turmoil that had disrupted global supply chains and triggered a potential food and energy crisis.

Jokowi made the statement when he received the 2021 Central Government Financial Report (LHP LKPP) at the Bogor Presidential Palace, West Java, Thursday.

"This situation must become our common understanding. We must have the same feelings to prepare the right response and policies at all levels of state institutions," Jokowi remarked.

The president noted that the current and future challenges would not be easier since Indonesia was still facing an uncertain situation that had made it all the more important to always stay vigilant.

"The global economic and political situation right now is very volatile. We have not recovered from the impact of COVID-19, and we are already facing a conflict between Russia and Ukraine that has disrupted the supply chain in the global economy," he pointed out.

The turmoil in the global situation affected the global economy in terms of the inflation and the potential for food and energy crises faced by all countries.

The head of state urged all parties to understand the current global economic and political turmoil to take the right step in formulating the policies.

Some of the appropriate policies to be implemented at this time include increasing domestic product spending to boost money circulation in the country, according to Jokowi.

"We have to maximize our own strength, especially the power of domestic spending. We have prepared a budget amounting to Rp526 trillion for the central government, Rp535 trillion for regional governments, and Rp420 trillion for State-Owned Enterprises (SOEs). The number is not small. It will have a significant impact if we spend it on domestic purchases," he emphasized.

In addition, industrialization and downstreaming of natural resources should be intensified in order to create added economic value and expand employment opportunities, Jokowi remarked.

"Build a processing industry from raw to semi-finished goods, or if possible, into finished goods. It will create a multiplier effect, not only in (terms of the) value but also in employment," he stated.

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