Jokowi: Global Economic Uncertainty Is Difficult To Calculate, Unpredictable

Screenshot - President Jokowi while giving a briefing to regional heads throughout Indonesia at the State Palace, Jakarta, Monday (30/10/2023).

JAKARTA - President Joko Widodo (Jokowi) spoke about the uncertain global economic situation.

Jokowi revealed that the Minister of Finance (Menkeu) Sri Mulyani, who has a long experience in careers in international financial institutions, is not easy to predict the current direction of the global economy, so all parties, both in the central and regional ranks, must be vigilant.

"I often say that the world is getting unclear now, the uncertainty of the global economy is difficult to calculate. Mrs. Minister of Finance (Sri Mulyani) has arrived everywhere, but calculates, calculating the global economic situation is really not easy and often unpredictable," said President Jokowi while giving directions to regional heads throughout Indonesia at the State Palace, Jakarta, as reported by ANTARA, Monday, October 30.

Jokowi tells of the current difficult-to-predict global monetary policy. Indicated, only the Central Bank of the United States The Fed raised interest rates, but adjustments from the world's most influential central bank have made all developing countries troubled by the return of capital flows.

Another thing that also causes uncertainty is climate change which also has an impact on food production. Jokowi said that in the past the impact of climate change was often underestimated. However, now the impact of climate change has caused drought which has finally reduced crop production.

As a result of this climate change, Indonesia must import food to cover production shortages. However, it is not easy to apply for imports to various producing countries because the whole world is facing the threat of a food crisis.

"Second, there were many climate change that used to be ahapa, bro, it looks like the goods' are now real. Drought in 7 provinces and several countries is reducing our rice production. We want to close from imports now, it's not as easy as looking for imported rice," he said.

Jokowi said that he had spoken with Indian Prime Minister Narendra Modi to get a quota of rice imports. However, this was not achieved because India also exported enough to secure the country's national stock.

"But he (PM Modi) uses his own for backup, doesn't dare to let go, I've spoken that I don't dare to let go," said Jokowi.

In addition, the president said, Southeast Asian countries that used to offer rice exports such as Thailand and Vietnam are also now limiting rice exports.

The dynamics of a global economy like this, emphasized by Jokowi, must be understood by all regional heads. Regional leaders must be aware of the impact on the local economy from this global uncertainty.

"The situation like this, ladies and gentlemen, should know, so that in working, I have to come here to understand. If fuel prices go up, what does that mean? Inflation will increase. Rising inflation means that the price of goods and services will also run up there. We ourselves have 7 provinces that have been hit by super El Nino production down, this is what everyone must be vigilant, "said Jokowi.