Russia began launching several attacks on Ukraine. The conflict between the two countries continues to heat up. Apparently, Indonesia will also be badly affected by this conflict. This is because Ukraine is a supplier country for several products to Indonesia.
Ukraine is the largest agricultural supplier sending wheat, rye, and other grains to Central Asia and the Middle East, including Indonesia. Therefore, the export-import chain between Indonesia and Ukraine could be disrupted.
Quoting Trading Economics, Indonesia’s imports from Ukraine amounted to US$ 963.06 million, equivalent to Rp. 13.7 trillion (Exchange rate of Rp. 14,300). That represents the value of imports for 2020, according to the UN Comtrade database on international trade.
Economic observer Rahma Gafmi explained, the outbreak of the conflict between Russia and Ukraine will affect many countries that have been highly dependent on Ukrainian grain supplies.
As for the number of products supplied from Ukraine, Indonesia imports the most cereal products. It is known that the value of Indonesia’s imports of cereal products reached US$ 710.42 million or equivalent to Rp. 10.15 trillion. This means that around 74% of products imported from Ukraine are in the form of Cereals.
The Impact of the Russian Side for Indonesia
On the other hand, the Executive Director of the Institute for Development of Economics and Finance (INDEF) Tauhid Ahmad explained that the outbreak of war would raise expectations for oil and gas supplies. This is because Russia is a major producer of oil and gas.
Tauhid continued, from the export-import side, Indonesia was not directly affected by the hostile country. However, Indonesia was affected by the increase in oil and gas prices.
He added that it is more worrying if the Russo-Ukrainian war involves many countries. Thus, the economic impact will be even greater.
“What we are really worried about is the second round, not the Ukraine-Russia war but NATO and Russia. That has a big impact, America is involved, most of Germany, the rest of the UK is involved. So that’s the danger. The economy to watch out for is much bigger,” he explained.