Indonesia to Not Be Affected by Prolonged Global Conflict

Minggu, 24 Desember 2023 – 14:04 WIB

Jakarta – The Indonesian Finance Minister, Sri Mulyani Indrawati revealed that the impact of global conflict and geopolitical tensions will continue to be prolonged. However, the problems will not affect the Indonesian economy. 

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“If we learn from world history, if we call it cracking from geopolitics, we are talking about a trend that lasts a decade, so it is impossible that next week, next quarter it will change,” the Minister said at the 2024 National Economic Outlook event at the St Regis Hotel, Jakarta on Friday. 

The Minister also admitted that she had spoken a lot with policymakers regarding this issue. Therefore, problems become more complicated when the political system increasingly leads to conflict with systems adopted outside the country.

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“If their democratic system becomes more extreme to the right, populist. Then, non-democratic ones will also become more protectionist and obviously feel under pressure, world fragmentation will occur and this will get worse before it gets better,” she explained. 

“In the sense that yes, there will be a point where all the leaders feel that hostility will cause more harm than good, and then it will reverse again, but it will not be a short term from that side,”

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However, Minister Indrawati feels confident that amidst the problems of war and heated geopolitical tensions at the global level, it will not have much impact on domestic economic conditions. 

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This is because the Indonesian economy is still considered stable as an investment destination, accompanied by the people’s consumption power which is still strong.

“Many want to relocate from China, also from the United States they see that Indonesia is a strategic partner that must be recognized in this case, so we are quite good,” the Minister informed. 

According to her, the strength of domestic consumption is also supported by the performance of government spending, which is still strong.

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“Many want to relocate from China, also from the United States they see that Indonesia is a strategic partner that must be recognized in this case, so we are quite good,” the Minister informed. 



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