"We have to be cautious. Everyone from many countries is predicting that the coming year will be a tough year. I have reminded you, we must not be careless, as in there used to be an opinion that for decades there would be no threat of war, but turns out that the war in Ukraine has had a global impact," Subianto said at the Defense Ministry Office on Thursday.
According to him, the war between Russia and Ukraine has led to an increase in the prices of fuel and energy, triggering a rise in food prices.
"Not to mention, Ukraine and Russia are the biggest wheat producers in the world. If I'm not mistaken, Russia and Ukraine produce 20 to 30 percent of the world's wheat. If this 25–30 percent is not available in the global market, the price will definitely increase. That simple," he explained.
Russia, which is the largest producer of energy, gas, and oil, is seemingly being shunned by the rest of the countries, causing fuel prices to rise. It is also one of the largest potash-producing countries in the world. Potassium is one of the raw materials for making fertilizer.
"This can push fertilizer prices up. So, we must be aware of this. This is the energy crisis problem. Of course, to face the crisis, we must anticipate (it). Thus, of course, every country is exercising more caution," Minister Subianto highlighted.
Chief of Presidential Staff, Moeldoko, had earlier said that the government has prepared various scenarios to anticipate any challenges that might arise in 2023 as a result of the global crisis.
"Essentially, (for) next year, the government will also prepare scenarios," Moeldoko informed in a statement received here on October 21, 2022.
He said that the government's measures to deal with the crisis in 2023 have not changed.
President Joko Widodo has often said that the Indonesian people can be optimistic, but must remain cautious.
"What does that mean? That in the current crisis situation, the President remains focused on development on track, remains focused, remains within the established national medium-term development plan; but in practice there is still (wiggle room)," he explained.
Moeldoko also urged the public to not worry about the ongoing global economic pressure. He cited the example of the government refocusing its budget to deal with the COVID-19 pandemic.
Thus, if in 2023, the war continues and oil prices rise again, Indonesia would be ready to face it, he said.
"The pressure of the COVID-19 pandemic on our economy in the last two years, in total, more than Rp1,000 trillion has been budgeted for it. The value is the same as building two state capitals, but we are ready with a policy of budget refocusing," he informed.
He pointed out that so far, the COVID-19 pandemic and the geopolitical crisis have brought three major threats: the food, energy, and global financial crisis. He said that the government's measures have been very effective in surmounting the three threats.
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Translator: Syaiful Hakim, Mecca Yumna
Editor: Sri Haryati
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