JAKARTA - Minister of Finance Sri Mulyani Indrawati said the implementation of structural reforms was still a homework in Indonesia.
"This includes how to build industrial structures that are able to survive or be resilient to various natural, geopolitical, and technological developments," Sri Mulyani said as quoted by Antara, Monday, August 8.
Some of the structural reform agendas, according to Sri Mulyani, have been carried out through changes to laws and regulations, but their implementation needs to be ensured.
Structural reforms are important to adapt to various changes, such as changes in lifestyle amidst the new normal after the COVID-19 pandemic, climate change, and geopolitical conflicts that change global supply chains, trade and investment.
"Various structural agendas such as improving productivity through improving the labor market, infrastructure, logistics, and deepening the financial sector are very important," he said.
Sri Mulyani said, currently Indonesia as one of more than 190 member countries of the United Nations (UN) is facing problems in the form of war in Ukraine and increasing tensions between China and Taiwan.
With these geopolitical issues, it is estimated that each country will conduct a review of its relationship with other countries.
"Protectionism is likely to get bigger, even stronger. Investment and trade relations are no longer based on the flow of good, capital, and free people," he said.
In addition, countries in the world are also facing the problem of climate change which can increase the level of damage caused by natural disasters so that structural reforms are becoming increasingly urgent to implement.
"This needs to be anticipated by Indonesia as an archipelagic country. Thousands of Indonesian islands could be threatened if the world temperature changes and sea levels rise," he said.
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