JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said that Indonesia's economy is currently facing more complicated problems. After the pandemic issue has been brought under control, new challenges arise from the geopolitical aspect which makes the pressure stronger than before.
"Currently, a crisis due to the war has affected the energy, food and financial sectors," he said at the Senayan Parliamentary Complex, Jakarta, while attending a working meeting with the DPR Banggar earlier this week.
Airlangga said that the dynamics had not ended and would continue to occur. In fact, this latest aspect is an event that is beyond human control. "The next crisis is about climate change. We (now) are still in the rainy season but the dry season will be long and this can have an impact on food, which must be considered," he said.
Furthermore, Airlangga revealed that the developing situation helped to raise the prices of various important world commodities which would certainly lead to a wider level of vulnerability. "It seems that the increase in commodity prices will still occur until the middle of next year which will lead to cost of living or inflation," he said.
"So this is the situation we are facing now, the title is The perfect storm or the perfect storm that we have faced in the last three years," he said.
For information, a strong indication of economic turmoil can be seen from the increase in the inflation rate in the last three months. According to VOI records, a high trend of inflation emerged last February on an annual basis (year on year / yoy) with a book of 2.03 percent.
Then followed by March, April and May with each at the level of 2.64 percent, then 3.47 percent, and 3.55 percent. Meanwhile, the government's target in terms of inflation is 3 percent plus minus 1 percent this year.
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