Jakarta, InfoPublik - The escalating conflict in the Middle East, along with Iran's attack on Israel, certainly adds to global uncertainty. Indonesia also asked all parties to exercise restraint so that the situation does not continue to heat up.
"Basically Indonesia asks that all parties refrain, because of course for Indonesia this geopolitical tension is not something we expect, because indeed various countries have not finished the war, in Gaza it has not been completed then the conflict in the Red Sea still continues to haunt. It also raises various concerns," said Coordinating Minister for Economic Affairs Airlangga Hartarto at his office on Tuesday (16/4/2024).
Airlangga explained that in the Middle East, especially in Israel, the Strait of Hormuz plays a very important role for logistics, especially fuel.
Airlangga Hartarto assessed that currently Indonesia's economic fundamentals are still strong enough to reduce the impact of conflict escalation in the Middle East, especially after Iran's attack on Israel.
He explained that economic growth is still maintained above 5 percent with controlled inflation. As of February 2024, Indonesia's trade balance is also still in surplus and supports the Foreign Exchange Reserves, which at the last position in March 2024 were still strong.
"We expect market players to remain calm and not take speculative steps. The government will continue to pay close attention to global and regional developments and will take strong and focused steps in maintaining financial system stability," Airlangga said.
Airlangga said that in order to reduce the impact of rising global oil prices due to the geopolitical conflict between Iran and Israel, the government is also paying close attention to the condition of the state budget so that it can play its role optimally as a shock absorber.
Currently, the government continues to carry out further coordination with monetary and fiscal authorities to produce a policy mix that maintains economic stability. (InfoPublik)