(The emergence of) the global supply chain term marked the end of the Cold War between the western bloc and the Soviet-led eastern bloc in 1991Depok, West Java (ANTARA) - Indonesia's free and active foreign policy principles and various economic leverages that the country has are assets for Indonesia to navigate through the ongoing global crises, according to the University of Indonesia (UI) Rector Ari Kuncoro.
Following the end of the Cold War, international cooperation significantly improved, as the global community strives to support each other with the spirit of partnership, he stated.
"(The emergence of) the global supply chain term marked the end of the Cold War between the western bloc and the Soviet-led eastern bloc in 1991," Kuncoro noted on Wednesday.
The rector cited economic theories while highlighting that emerging international cooperation allows for the division of labor between sovereign states that would reduce commodity production costs.
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"If the situation is fine, a country can depend on other nations for gas supplies. Yet what is happening next? When countries are dependent on each other, a fight breaks out," the rector remarked.
He said that an event on February 25, 2022, sent shockwaves through the global supply chain and caused disruptions to the established system.
"Our globalization turned into deglobalization, and everyone punishes each other and isolates each other," he stated.
Kuncoro, an expert in macroeconomics, stated that Indonesia's free and active foreign policy is an asset for the country to navigate through the global crises.
"Free, not neutral, and active in pushing for global peace. I believe the word free is correct. Why is it? Because in statistics, using the median policy does not mean neutrality (in the perfect centre), but we must seek the median point," Kuncoro stated.
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Apart from Indonesia's G20 Presidency, the country has greater leverage of its natural resources, strong purchasing power, and participation in the international supply chain, he noted.
Indonesia, which is the current holder of the G20 Presidency, also provides a medium for countries to be level-headed in deliberating solutions to address food insecurity, the university rector added.
Kuncoro emphasized that Indonesia must not hold back but rather utilize the opportunity to promote its production capacity to help press the surging global inflation.
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Translator: Feru Lantara, Nabil Ihsan
Editor: Fardah Assegaf
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