Global Economic Situation and Geopolitical Tensions Impacting Supply Chains: Finance Minister Sri Mulyani Indrawati

Jakarta –

Finance Minister Sri Mulyani Indrawati revealed that the global economic situation is still not good. The heated geopolitical conditions emerging in the Middle East are affecting the supply chains of the world.

“The global economic situation, which is still weak, is under constant pressure, especially from a geopolitical point of view. The situation is changing very quickly, geopolitical tensions in the Middle East are increasing supply chain disruption and commodity price volatility,” said Sri Mulyani, quoted from Instagram @smindrawati, Friday (26/4/2024).

In addition, the United States (US) economy is recovering, but inflation remains high so interest rate policies are higher than market expectations. This situation caused many investors to look at the US dollar and caused other currencies, including the rupiah, to weaken.

“So there is an outflow of capital in many countries and a weakening of currencies other than the dollar,” he explained.

However, Sri Mulyani remains confident that Indonesia’s economic growth in the first quarter of 2024 will be around 5% year on year. Inflation is also said to remain under control at 3.05% yoy.

“With this situation, our economy is still well maintained. The Ministry of Finance projects that economic growth in Q1 2024 will still be around 5% yoy. As of March, our PMI remains broad at 54.2; Consumer Confidence Index remains high at 123.8; Mandiri’s Spending Index continues to grow at 46.9; the Real Sales Index is also positive at 3.5% yoy. Our inflation is also relatively under control at 3.05% yoy,” said the former World Bank Director.

In the same statement, Sri Mulyani also explained that the state’s revenue until the end of March 2024 had collected IDR 620.01 trillion or a decrease of 4.1% compared to the same period last year (year after year / yoy).

Then, in terms of state spending, the government has spent IDR 611.9 trillion until the end of March 2024. Then it was recorded that the APBN was still in surplus of IDR 8.1 trillion until the first quarter or March 2024.

(hat/hns)