The Impact Of The Russia-Ukraine War On Oil And Gas Prices Could Burden The State Budget, Observer: Our Economic Growth Can Be Affected

Lecturer of Paramadina Graduate School of Diplomacy Dr. M. Syaltout. (Photo: Doc. Paramadina University)

JAKARTA - The economic and trade gains and losses in the Russia-Ukraine conflict do not only depend on which side is political (whether pro-Russia or pro-Ukraine). But it depends on trade inter-dependence, whether with the large Russia alliance trade network or the Ukraine-US-EU alliance and also specifically on export and import commodities.

As stated by the Paramadina Graduate School of Diplomacy Lecturer, Dr. M. Syaltout at the Didik J. Rachbini Political Economy Forum entitled “The Impact of the Russo-Ukrainian War: Global Economy and Politics” which was held through the Twitter Space platform, quoted on Saturday, February 26.

According to Syaltout, when the war continued, it turned out that not all parties were stumped, lost, had a deficit, and experienced a trade and economic crisis. "There are some countries that actually benefit from the emergence of not only tensions between countries, but also open wars," he said

Touching on Indonesia's position, Syaltout stated that as a net oil importer country, the higher oil and gas prices after the increasing escalation of the Russia vs Ukraine conflict, in the long run, could harm Indonesia.

"If it is not handled properly, with the economic shock to the State Budget due to the COVID-19 Pandemic, high oil and gas prices will further burden our State Budget. Our economic growth, which is quite improving in 2021, could be affected," said Syaltout.

On the other hand, Indonesia is currently known as a gold, silver, aluminum, and nickel producing country which is currently also rising following the increasing escalation of the Russia vs Ukraine conflict.

"If we can optimize this opportunity, our economy will not only be safe from the threat of a deficit due to the impact of rising oil and gas prices, but also can make big profits," he said.

However, to get big profits, a precise strategy is needed regarding mining, both upstream and downstream, including of course related to smelter construction and others.

"This is where Indonesia's Free and Active Politics find its relevance and significance," added Syaltout.