Ready To Help The Government Anticipate The Impact Of The Global Crisis, Kadin Offers MSME Assistance Program

Chairman of the Chamber of Commerce and Industry Arsjad Rasjid. (Photo: Doc. Antara)

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) will continue to coordinate with the government to anticipate the impact of the global crisis on Indonesia. Especially in strengthening Indonesia's food and agricultural security.

Chairman of Kadin Arsjad Rasjid said the geopolitical conflict between Russia and Ukraine resulted in the emergence of a global crisis in the midst of economic recovery after the COVID-19 pandemic. Not only that, political conflicts have also had an impact and caused a global food crisis.

"Indonesian Chamber of Commerce and Industry will continue to coordinate with the government in efforts to prevent and minimize the food crisis, so that it does not result in a social crisis, which can then become a domestic political crisis," he said in a written statement quoted by Antara, Sunday, May 15.

Kadin itself has a MSME assistance program with a close loop scheme aimed at fostering farmers and creating cooperation between large and small companies and farmers in Indonesia.

The inclusive close loop program is expected to increase the resilience of farmers in Indonesia amidst the challenges of inflation and climate change.

Arsjad said the scarcity of several food commodities such as soybeans and wheat, the reduced supply and production of food in several countries due to the long drought, coupled with the scarcity of oil supplies due to the war, had caused global inflation.

This condition is marked by an increase in the prices of goods and services in general. High inflation can weaken people's purchasing power and the impact is felt by the poorest people and has the potential to cause a social crisis, where there is a risk of increasing poverty rates and widening social inequality.

Food protection for each country has also started, there is no longer a pro-export slogan for food ingredients.

Although the impact of global inflation in Indonesia is relatively small compared to global inflation and in other countries, Indonesia must prepare and anticipate the impact of global inflation.

"Gotong royong, social dialogue and cooperation between various parties including the government, business actors and workers are needed to face the challenges of this crisis," he said.

Not only that, Indonesia is considered to have played a critical role in strengthening international economic cooperation, especially through the 2022 G20 Presidency.

As the organizer of the B20 Business Forum, the Indonesian Chamber of Commerce and Industry invites all G20 member countries to participate in the dialogue on formulating solutions for recovery and strengthening the global economy.

"Indonesia through this year's B20 is committed to fighting this pandemic and economic crisis through concrete and tangible results through investment and other collaborative projects in the fields of energy transition, health infrastructure, digital and inclusive economics," concluded Arsjad.