The Israel-Palestine Conflict is Said to Have a Minor Impact on Indonesia’s Economy

Gaza was devastated by Israeli attacks in Israel-Palestine war (photo: (Hatem Mousssa)

Amid the escalating conflicts that have been unfolding worldwide, there is a growing sense of unease that has gripped nations across the globe. However, Airlangga Hartarto, the Coordinating Minister for Economic Affairs, offers a somewhat contrasting perspective, asserting that the impact of these ongoing global geopolitical struggles, spanning from the Russia-Ukraine conflict to the Israel-Palestine situation, is, in fact, relatively limited when it comes to its repercussions on Indonesia’s economic landscape.

Airlangga Hartarto goes on to emphasize the regional stability that Indonesia has consistently maintained within the ASEAN context over the last two decades. Despite the turmoil that has been witnessed in regions like Ukraine and the Middle East, Indonesia remains a steadfast bastion of optimism, its position characterized by an increasingly pivotal role in the Indo-Pacific region and ASEAN as a whole.

The minister also takes this opportunity to convey a message from President Joko Widodo regarding the Israel-Palestine conflict, which, although on his agenda, he had to delegate representation to the coordinating minister due to other pressing commitments.

In addition to his insights on global geopolitical tensions, Airlangga Hartarto shines a light on the prevalent global food crises and the flagging economic strength of China. These challenges are undeniably interconnected with the global landscape and, consequently, do cast a shadow over the Indonesian economic sphere.

Airlangga’s stance is fortified by the fact that the shifting dynamics and epicenters of global influence bring fresh opportunities and challenges that Indonesia must deftly navigate. Geopolitical uncertainties, exemplified by conflicts in Europe, the Middle East, and food crises, are some of the key issues that demand Indonesia’s careful consideration and strategic maneuvering.

It is worth noting that Tina Talisa, the spokesperson for the Investment Ministry/BKPM, is closely monitoring these global developments. The ongoing situation in Israel-Palestine and other global affairs is under scrutiny to better strategize Indonesia’s future moves, particularly with the aim of attracting foreign investors.

Tina Talisa also underscores the fact that thus far, the conflicts in the Middle East, including the situation in Palestine, have not had a direct impact on Indonesia. This stance reaffirms their unwavering commitment to achieving investment targets, as laid out by Minister Bahlil, with a confident outlook on reaching their goals.

Furthermore, Tina Talisa draws attention to the alliances forming amid the ongoing conflicts. She highlights that the Indonesian government remains committed to a free and active political approach. To illustrate this point, she references Indonesia’s ongoing and fruitful relations with Taiwan, a country currently facing tensions with China, as a testament to their adept navigation of the delicate interplay between politics and a thriving, open economy.

In essence, the global geopolitical landscape is undoubtedly complex and brimming with uncertainties. Nevertheless, Indonesia, led by its astute economic leadership, is prepared to chart a course that leverages regional stability, optimizes opportunities in the Indo-Pacific region and ASEAN, and diligently manages the various challenges that emerge from the world’s multifaceted geopolitical landscape. The message is clear: Indonesia is both resolute and adaptable in its pursuit of economic growth and stability on the global stage.