President Jokowi Talks About War At The Asean-US Summit, Trade Minister Lutfi Reveals Its Impact On The Economy

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - President Joko Widodo (Jokowi) at the ASEAN-US Special Summit called for an end to the war in Ukraine right now. In response to this, the Minister of Trade (Mendag) Muhammad Lutfi who was in the group emphasized that the war situation created a humanitarian tragedy and worsened the world economy.

According to the Minister of Trade, rising prices for food, energy, and inflation have occurred, severely burdening the economy and slowing the achievement of sustainable development goals in developing and least developed countries.

“President Joko Widodo stated that currently the world is experiencing a new problem that is not easy. After the COVID-19 pandemic which is now gradually getting better, the world is shocked by the problem of the war between Russia and Ukraine. Indonesia hereby firmly opposes the occurrence of war," he said in an official statement quoted on Sunday, May 15.

The Trade Minister added that currently the world needs cooperation and collaboration, not rivalry and confrontation as well as unilateralism that is becoming increasingly prominent.

"The President emphasized that every country, every leader has a responsibility to create an enabling environment so that war can be stopped and peace can be realized," he said.

The Minister of Trade explained that the condition of world economic growth is quite alarming. The International Monetary Fund (IMF) has lowered its prediction for economic growth in emerging and developing Asia by 0.5 percent in 2022 and 0.2 percent in 2023. Meanwhile, the World Bank also predicts economic growth in several ASEAN countries to only 1.2 percent.

"President Joko Widodo said that a 10 percent increase in world oil prices will have an impact on decreasing the national income of several ASEAN countries by 0.7 percent and an increase in wheat prices will also lead to a 1 percent increase in poverty in some ASEAN countries," he said.

Furthermore, so far ASEAN has built an inclusive security architecture, puts forward a collaboration paradigm, encourages a habit of dialogue and rules based orders. This spirit is also encouraged to be implemented in Indo-Pacific countries through the ASEAN Outlook on the Indo-Pacific.

Minister of Trade Lutfi emphasized that President Jokowi welcomed America's initiative through the Indo-Pacific Economic Framework (IPEF).

The Trade Minister also conveyed that President Joko Widodo plans to hold the Indo-Pacific Infrastructure Forum when Indonesia becomes the chair of ASEAN next year.

"Mr. President hopes for the participation of the United States in the forum," said Trade Minister Lutfi.

As a follow-up to President Joko Widodo's directives, Minister of Trade Lutfi held the ASEAN Economic Ministers (AEM) Special Meeting in Bali on 17-18 May 2022.