/data/photo/2021/07/02/60debc108c121.jpg "Kadin Reveals Potential Global Food Crisis Due to Russia-Ukraine Conflict All")
JAKARTA, KOMPAS.com – Chambers of Commerce and Industry (Woman) Indonesia highlighted the potential post-Covid-19 global crisis due to the geopolitical conflict between Russia and Ukraine.
Chairman of the Indonesian Chamber of Commerce and Industry Arsjad Rasjid said, Russia and Ukraine conflict can not only cause a global crisis, but can also lead to food crisis global.
“This is a more serious threat to the world today,” he said in a written statement, Saturday (14/5/2022).
According to Arsjad, the scarcity of several food commodities such as soybeans and wheat, the reduced supply and production of food in several countries due to the long drought, coupled with the scarcity of oil supplies due to the war, caused global inflation.
“(Global inflation) is marked by an increase in the prices of goods and services in general,” he said.
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He continued, high inflation can weaken people’s purchasing power, especially the poor.
In addition, high inflation also has the potential to cause a social crisis, there is a risk of increasing poverty rates and widening social inequality.
As is known, the protection of each country’s food ingredients has begun, there is no longer a pro-export slogan for food ingredients.
Kadin steps
1. Coordinate with the government
According to him, the phenomenon is feared to have a systemic impact in the form of social and political crises. For that he continues to coordinate with the government to anticipate global food crisis.
“Indonesian Chamber of Commerce and Industry will continue to coordinate with the government in efforts to prevent and minimize the food crisis, so that it does not result in a social crisis, which can then become a domestic political crisis,” he said.
This coordination, he continued, was carried out primarily in strengthening Indonesia’s food security, especially in the agricultural sector.
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2. Create an MSME assistance program
One of them is by creating a MSME assistance program with a close loop scheme aimed at fostering farmers, as well as creating cooperation between large and small companies and farmers in Indonesia.
He hopes that this inclusive close loop program can increase the resilience of farmers in Indonesia in the midst of the challenges of inflation and climate change.
Although the impact of inflation in Indonesia is relatively small compared to global inflation and in other countries, Indonesia must prepare and anticipate the impact of global inflation.
“Gotong royong, social dialogue and cooperation between various parties including the government, business actors and workers are needed to face the challenges of this crisis,” he said.
3. Inviting G20 member countries to participate
In addition, according to him, cooperation between countries is also very important. In this regard, Indonesia plays a critical role in strengthening international economic cooperation, especially through the 2022 G20 presidency.
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The Indonesian Chamber of Commerce and Industry as the organizer of the B20 Business Forum, invites all G20 member countries to participate in the dialogue on formulating solutions for recovery and strengthening the global economy.
Not only that, Indonesia through this year’s B20 is committed to fighting the pandemic and the economic crisis through concrete and tangible work results through investments and other collaborative projects in the areas of energy transition, health infrastructure, digital and economic inclusion.
4. Establish closeness with the United States
He said the Indonesian Chamber of Commerce and Industry also welcomed the Indo-Pacific Agreement to establish closeness between Indonesia and the United States.
Although until now there is still no definite information regarding the contents of the agreement.
However, according to him, Indonesia must prepare for all possibilities and use them as cooperation in supporting economic development. Especially for expanding market access, increasing trade and investment.
According to him, as the largest country in Southeast Asia, Indonesia has a great opportunity to become a catalyst for global economic recovery. Especially in advancing developing countries in the midst of the global crisis that the world is currently facing.
He explained that the ASEAN-US Summit resulted in good synergy between Indonesia and the US. At least from the discussions discussed at the ASEAN-US Summit, many large US companies and MSMEs are interested and committed to expanding and realizing business in Indonesia. The US has also committed US$ 150 million for development in ASEAN.
“The transition of energy, health and the digital economy has also been discussed a lot. How about the technology transfer, there are already several companies that have entered and will enter to build a data center, etc. Investment interest is also discussed in the mining sector in Indonesia, for example nickel Then invest in the pharmaceutical industry to batteries,” he explained.
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