Indonesia Viewed As Needs To Anticipate The Impact Of The Global Economy Due To The Iran-Israeli War

Officers calculated the US and rupiah dollar denominations at foreign currency exchange outlets in Jakarta, Friday (1/3/2024). BETWEEN PHOTOS/Muhammad Adimaja/rwa.

SEMARANG- Poliltik as well as professor and economist founder of the Institute for Development of Economics and Finance (Indef) Jakarta Didik Junaidi Rachbini sees the need to anticipate economic and political policies in the war between Iran and Israel.

A shocking attack from Iran in retaliation against Israel, according to Prof. Didik J. Rachbini, shocked the world, as well as escalated the escalation of the conflict in the Middle East.

"This will definitely have a broad impact on the national and global economy, which absolutely must be anticipated with policies," said Prof. Didik, quoted from ANTARA, Thursday morning, April 18.

Although there is still no certainty about further escalation, said Prof. Didik, there are almost no factors that reconcile them at all so that it will stop soon.

Therefore, anticipation of policy mitigation needs to be formulated and carried out with tense environmental conditions.

For Indonesia, especially for the newly elected president, according to him, this uncertain condition can make a mess in carrying out its economic policies, even adding to the new burden for the community.

"The high target of economic growth, as well as wishful thinking in campaigns, just forget about it, focus on people's resilience, their purchasing power, prevent large unemployment," he said.

Prof. Didik emphasized that the policy of maintaining inflation and prices for basic needs is the main policy to protect vulnerable lower groups.

He sees the need to prioritize three policies to maintain and protect the lower and vulnerable groups. First, the government must do its best and all its ability to control prices or keep inflation from falling.

"This is a duet between the government and Bank Indonesia," said Prof. Didik, who was once the Dean of the Faculty of Economics and Assistant Chancellor of Mercu University, Buana Jakarta.

In this policy, Bank Indonesia plays an important role in controlling it from its monetary side.

So far, according to him, BI is quite good at carrying out inflationary control and even harder to run it at a time when the world is in peak tension.

Meanwhile, in terms of the real sector, the central and regional governments are obliged to monitor the prices of the people's basic needs from day to day, even from hour to hour.

The economist, who is a lecturer in the Postgraduate Program at the University of Indonesia, then mentioned that in the regions there is a regional inflation control team (TPID).

Fiscal Policy

The second policy is fiscal, the only policy instrument that can be directly used by the government.

This policy, according to him, needs to be maintained so that productive spending can help the lower and vulnerable communities.

"Good fiscal policy is prudent, careful and able to control the deficit, do not jorjoran, big projects control, and populism should not be haphazard," he ordered.

Another policy is to maintain productivity and the business world in the country. It must be remembered, he said, that the domestic sector is the largest part, namely 75 percent.

Although externally shaken, Prof. Didik emphasized the need to maintain the economy and domestic business, especially small and medium, is very important at a critical time.

In addition, foreign trade policies need to be directed to areas that are slightly affected by war.

"The route to Europe and the Middle East must be disrupted. However, trading partners at the other economic poles will continue to live, such as partners of Japan, China, ASEAN, and India," said Prof. Didik.

Sekarang saja, lanjut dia, dampak psikologisnya sudah terasa. Oleh karena itu, pemerintah perlu ahli komunikasi publik yang memahami masyarakat, terutama bagi pasangan calon terpilih pada Pilpres 2024, mulai sekarang untuk melakukan kebijakan komunikasi publik berkaitan dengan antisipasi kebijakan dari dampak perangan Iran dan Israel.