The Dilemma of the Ministers of Finance, Sri Mulyani Until “Curried” by the Ministers of Finance of Turkey and Egypt

JAKARTAKOMPAS.com – Minister of Finance Sri Mulyani Indrawati admitted that she exchanged ideas with the Ministers of Finance of Turkey and Egypt at the meeting of the Islamic Development Bank (IsDB) in Sham El Sheik, Egypt, some time ago.

They discussed issues that made ministersMinister of Finance dilemma due to uncertain global conditions, including the issue of rising inflation. In addition to the crisis that the country is currently facing, high inflation is also affected by the Russo-Ukrainian war.

“What is happening now is that the world’s economic recovery is progressing, but it is accompanied by an increase in commodity prices, which have soared very high, especially since the February attack on Ukraine by Russia,” Sri Mulyani said at a meeting with the DPD RI in JakartaTuesday (7/6/2022).

Read also: In April, Inflation in Turkey Soars to 69.97 Percent, Highest in Two Decades

The former Managing Director of the World Bank said that Turkey’s Minister of Finance, Nureddin Nubeti, spoke about its inflation rate which has already reached 74 percent.

This happens because energy such as fuel and gas is not subsidized/compensated by the state. As a result, the increase in global commodity prices was immediately felt by the public with rising energy prices.

“Domestic inflation is 74 percent, imagine. Indonesia is 3.5 percent. They say that energy prices are not being absorbed, so the pass-through goes up straight away. Food prices increase,” said Sri Mulyani.

Read also: Because of the Russo-Ukrainian War, Food Prices in Egypt skyrocket

Meanwhile, Egyptian Finance Minister Mohamed Maait shared that he felt the increase in the price of wheat and oil, even though Egypt has gas.

Just like Indonesia, the Egyptian government decided to provide energy subsidies to its citizens. However, the deficit is much higher than Indonesia’s.

“For energy they are still absorbing so they sell in that case the fuel is roughly the same as Indonesia, but the subsidies are very high. The deficit in the APBN is above 6 percent. We are now at 4.7 percent,” said Sri Mulyani.

Read also: Geopolitical Tension Triggers Crude Oil Prices to Their Highest Level Since 2014

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