Airlangga Worries Fuel Prices Will Be Affected By The Israel-Palestinian War

Coordinating Minister for Economic Affairs Airlangga Hartarto (Photo: Aris Nurjani/VOI)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that geopolitical tensions between Israel and Palestine are expected to have a big effect on the global economy, including the domestic economy, making oil prices rise again.

Airlangga said that currently the government will continue to take anticipatory steps against various risks due to global uncertainty. Especially in commodity price movements including fuel oil (BBM), considering that the country in the Middle East is one of the largest oil producers in the world.

"The risk of war, we are still monitoring because usually if there is tension, the commodities affected are commodities including fuel and other commodities," he said at a press conference, at his office, Jakarta, Monday, November 6.

Airlangga said he could not confirm how long the geopolitical tension would last. Because the global economy is expected to be experiencing a slowdown, it will have a strong impact on the global economy of tensions in the two countries.

According to Airlangga, the global economy is still unstable because it has not fully recovered from the continuing war between Russia and Ukraine.

"The government continues to anticipate various risks, due to the uncertainty of the new geopoliticals in the Middle East, which of course Ukraine is not finished yet, Israel-Hamas is increasing uncertainty. The world is just starting to breathe, now it can't breathe anymore," he said.

Airlangga said various international institutions estimate that global economic growth will slow down plus the impact of climate change which will disrupt food supplies and have not been resolved.