RI Is Assessed To Be Able To Overcome The Increase In Oil Prices Due To The Gaza Conflict

Crude oil illustration (Photo: Unsplash)

JAKARTA - Indonesia is still considered capable of overcoming the condition of the possibility of rising world oil prices due to conflicts in Gaza.

According to the Minister of Finance for the 2013-2014 period as well as senior economist Chatib Basri, it is not impossible that world oil prices will increase if many countries in the Middle East are involved in the conflict.

"If many countries in the Middle East are involved, supplies will be disrupted, then oil prices will increase," Chatib said, quoting Antara.

He explained, based on the analysis or scenario of Bank Mandiri's Office of Chief Economist, Indonesian inflation could rise to 4.5 percent if world oil prices rose to 146 US dollars per barrel, and made the price of fuel oil (BBM) in Indonesia increase.

Even so, he assessed that until September 2023 the availability of oil in Indonesia was still in a surplus condition so that the government still had room to absorb the subsidy burden so that there would be no increase in fuel prices.

Chatib also predicts that Indonesia's fiscal condition will persist in a deficit of 2.1 percent until the end of 2023.

"So maybe the policy that will be carried out is to absorb the burden into fiscal, because there is still room in the deficit and does not increase fuel prices," said Chatib.

Although in the midst of uncertain geopolitical conditions at this time, according to him, countries in Asia are currently still the light of the global economy, especially Indonesia.

Because based on his presentation, Indonesia does not yet have high economic challenges or risks. The economic challenges that Indonesia will face in the future, according to him, are medium challenges such as the impact of other countries' policies and low challenges such as elections to trade relations between the United States and China.

"That's why IMF people say Indonesia is a bright spot, a bright spot, because the growth (economic) is still around 5 percent, although 5 percent is not enough," said Chatib.