World Food Commodity Prices Fluctuate, Erick Thohir: Indonesia Will Experience Supply Chain Shocks In 2030

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - SOE Minister Erick Thohir said that currently there is an economic imbalance in countries in the world, causing shortages and soaring commodity prices globally. In fact, access to the needs of other countries to a country is quite limited.

Erick also reminded that not all countries can stand on their own feet. Therefore, in the global economic ecosystem, a country needs a supply of commodities from other countries.

Furthermore, Erick said this cycle continues because not all natural resources (SDA) are owned by any country.

"Because it is impossible for all countries to be independent. Because there are ingredients that are not owned by a country. Like fertilizer, we don't have prostate which is the raw material for fertilizer," he said while giving a public lecture at Hasanudin University Makassar, Wednesday, March 30.

Therefore, Erick estimates that Indonesia will experience supply chain shocks or natural resources supply chain in 2030. During that period, natural resources or commodities are expected to experience a very significant increase in demand.

Erick estimates that this condition will make the balance or equilibrium of natural resources or commodities in the country will increase sharply.

"Supply chain turmoil, one of which happened because of COVID-19 as well, so the balance of natural resources or commodities will continue to increase until 2030. The commodity number will be like this (up) and in 2030 it will be like this (up) and not go down again. What does it mean, there will indeed be a shock from the supply chain," said Erick.

According to Erick, supply chain shocks have also made production costs very expensive. However, Erick is optimistic that this problem can be handled by the government through the downstream process of natural resources.

Furthermore, Erick said that the wealth of natural resources supported by the market and the potential of the digital economy made Indonesia able to solve problems in the future.

"But we agree that don't be afraid, our economy continues to grow. Our natural resources with downstreaming as well, our huge digital economy will continue to grow. But this is what I have said, it is very important that we map out our position today and in the future," he said.