Indonesian Finance Minister Sri Mulyani Indrawati has warned of global commodity price pressure on domestic foodstuff prices although national inflation is still relatively low.
“We have begun to see several global commodity price pressures on the country such as (the impact of) the crude palm oil (CPO) (price hike) on cooking oil (price) in Indonesia,” she said during a working meeting with Commission XI of the House of Representatives (DPR) in Jakarta on Wednesday.
She also warned of global supply disruptions and stagflation and said they would also need to be monitored for any potential impact on commodity prices in Indonesia. This is one of the global economic risks today, she remarked.
Given the relatively controlled inflation rate, the government is focusing on accelerating economic recovery to make the domestic economy stronger and be able to withstand price pressures that may be felt this year, Indrawati said.
“This is the strategy that we will take into account,” she added.
She said global developments must be one area where the nation must stay alert to ensure sustainable development.
In addition to global supply disruptions and potential stagflation, there are at least three other crucial factors that will influence the global economy in 2022 and 2023, according to Indrawati.
The issues are the reduction of asset purchase tapering by the US Federal Reserve, the European central bank, and policy changes in China, she said.
Therefore, to maintain economic recovery, the nation must exercise caution because it will need to take into account global and domestic conditions, she added.
Source: Antara News