Businessmen Are Worried That The Russia-Ukraine Conflict Will Disrupt Global Distribution

Chairman of Apindo Hariyadi B. Sukamdani. (Photo: Doc. Antara)

JAKARTA - Chairman of the Indonesian Employers' Association (Apindo) Hariyadi Sukamdani said that it is undeniable that the Russia-Ukraine conflict has made the business situation difficult. Many commodity prices soared due to the polemic, one of which was the surge in energy prices.

"Indeed, we see the most serious problems right now because the Russia-Ukraine conflict is really putting us in very, very difficult conditions," he said during a virtual discussion, Thursday, April 7.

Haryadi said the role of these two countries is very large in the energy sector, Russia is the largest gas exporter to Europe. Meanwhile, Ukraine produces vegetable oil and wheat for export, including to Indonesia.

"Incidentally we also buy wheat in large quantities from Ukraine," he said.

Not only that, said Haryadi, apart from supplying energy, Russia is also an exporter of fertilizer raw materials. As a result of the Russo-Ukrainian war, fertilizer prices skyrocketed.

"Don't forget that fertilizers from Russia are also dominant in terms of potassium, ammonia and so on. They also control almost 40 percent of world exports for fertilizers. Fertilizer prices have soared. This is also a problem for food," he explained.

Currently, many countries have also imposed an economic embargo on Russia. As a result, it will also provide a multiplier effect on the world distribution chain in the long term.

"And this is also what ultimately causes distortions in the global supply chain so that this condition is a record," he said.