Airlangga Reveals As A Result Of Iran-Israel Conflict Potentially Investors Search For Safe Assets

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Doc. VOI)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said the geopolitical situation that was heating up between Iran and Israel triggered investors to look for safe or safe-haven assets such as the United States (US) dollar and gold.

Meanwhile, demand for safe-haven assets rose amid rising tensions in the Middle East after Iran fired drones and missiles directly at Israel.

"Escalation certainly increases uncertainty and of course what we have to mitigate is the transfer of assets to safe haven, in this case the US dollar, gold, nickel also increased," said Airlangga after the Halal Bihalal event at the Coordinating Ministry for Economic Affairs, Jakarta, Tuesday, April 16.

Airlangga said that the dollar index financial market has strengthened various countries. In addition, the exchange rate and stock price index of various countries have weakened globally.

"However, Indonesia is relatively better than peer countries in ASEAN. Then we also see that we need to maintain financial market stability," he explained.

Nevertheless, Airlangga said that currently the government continues to carry out structural reforms to maintain the economy, one of which is by maintaining capital inflows, so that foreign capital flows can be maintained by maintaining macroprodential, economics this year.

"Of course we need to want to do several policies, including the fiscal and monetary mix, maintaining exchange rate stability, maintaining the state budget, and monitoring logistical increases and rising oil prices," he said.

According to Airlangga, the Red Sea and the Strait of Hormuz located in the Middle East have an important role, as the Strait of Hormuz passed by as many as 33,000 oil and Red Sea vessels passed by about 27,000 freight vessels, and the increase in the freight cost was one of the things that had to be mitigated.