"Indonesia's economy grows quite well, but we need to be wary of other countries' incapability of handling the COVID-19 pandemic," the minister noted during the Region Inflation Handling Coordination Meeting here Tuesday.
"They are not as successful as Indonesia, and they are not capable of maintaining the recovery of their economy like Indonesia," he stated.
According to Karnavian, other countries' incapability in handling the economy and inflation can affect Indonesia since it is part of the global economic system.
He cited countries, such as China, Hong Kong (China), Australia, and Japan, as examples as they are still engaged in handling the COVID-19 pandemic that indubitably affects their economies.
Moreover, the crisis arising from the war between Russia and Ukraine is another cause for concern. Russia is a large country and is one of the suppliers of global commodities, such as fuel, energy, and wheat.
Western countries and Europe responded by imposing sanction on Russia. This condition disrupts the global supply as well as triggers commodity inflation, and Indonesia is also affected by this global influence, he pointed out.
While Indonesia is far from the Russia-Ukraine crisis, Russia is a major player in international politics and economy, he remarked.
"If the war is between two small countries, it would not be too disruptive, but Russia is the fourth-biggest supplier of fuel oil energy and the second-biggest wheat supplier in the world," he explained.
To this end, the minister urged all parties, especially regional governments, to always be wary of the influence of the world's economy.
This is because contribution from the regional governments in controlling prices in their respective regions has had a major impact in handling the national inflation.
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Translator: Boyke Ledy W, Fadhli Ruhman
Editor: Rahmad Nasution
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