After going through the economic crisis phase due to the Covid-19 pandemic, the Indonesian economy is gradually starting to recover. However, Finance Minister Sri Mulyani Indrawati revealed that she and other authorities were not complacent.
This is because there are still many factors that will affect the Indonesian economy at this time, especially in rising commodity prices which are increasing very quickly and extremely.
The extreme increase in commodity prices pushed up inflation at the global level, especially in developed countries that took extreme tightening of monetary policy, particularly in the United States and Britain.
“Monetary policy tightening means that interest rates will rise, liquidity will also be tighter. We need to be aware of this in its implications for the momentum of global economic recovery,” Sri Mulyani explained in the Commodity Balance Talkshow, Monday (30/5). /2022).
Indonesia’s main trading partner country, China, is also experiencing a spike in cases of Covid-19 transmission, which has made the Panda Country implement a zero policy against a pandemic or lockdown. Restrictions on activities in China will certainly have an impact on the Indonesian economy.
Furthermore, the existence of geopolitical tensions between Russia and Ukraine which have led to disruption of the supply system and economic sanctions have caused commodity prices especially energy and food.
“Facing changes in the world economy and the dynamics of risks that are shifting very quickly, we must increase our vigilance and ability to respond to policies quickly,” said Sri Mulyani.
“Indonesia continues to carry out various reform steps to build an economy that is more resilient or strong and resilient and flexible,” Sri Mulyani continued.
Furthermore, the trade balance which recorded a surplus for 24 consecutive months until April 2022 strengthened Indonesia’s external conditions amidst high global uncertainty.
Based on the latest data, Indonesia’s trade balance posted a surplus of US$7.56 billion which was the highest of all time.
Finance Minister explained that this condition, which was accompanied by a revival of economic activity, would make a very positive contribution in terms of the external balance.