Jakarta (ANTARA) Jakarta (ANTARA) Affairs Minister Tito Karnavian again brought to the attention of regional authorities and teams working on inflation control to collaborate to manage the rise in inflation.
“The nationwide (inflation) number comprises measures that are taken by all regions 548 regions that cover cities, provinces, and districts, have to collaborate,” Minister Karnavian stated during a meeting of coordination to control regional inflation here on Monday.
The minister stated that the rate of inflation in Indonesia was declining, and even had a higher rate than the other countries, at about 5.95 percent.
However, this shouldn’t cause people to be smug, since the main reason for the rise in inflation wasn’t local circumstances but global economic conditions which were still affecting financial and economic sectors, he said.
While the COVID-19 pandemic decreased in certain countries, the economic effects caused by the epidemic were still widespread, the doctor said.
The ongoing conflict that is raging between Russia and Ukraine continues to impede the world’s economic situation to the point where Indonesian regions too were impacted by the aftermath.
This was due to the fact that Russia was a significant force to be considered in the financial energy, food, fuel and energy fields the minister noted. In addition, Ukraine received power assistance from the West and also from the North Atlantic Treaty Organization (NATO) as well as the global authority in several sectors.
“Hence this is having an influence worldwide. Everybody knows that Russia is among the nations that are the fourth largest exporter of oil around the globe and energy(-wise) particularly gas in Europe is heavily dependent upon Russia. Particularly before the winter months the demand for gas is highly high.” the official said.
Additionally, Russia was the second-largest exporter of flour and wheat around the globe. In the end, the war shattered the world’s food and energy supply chains, thus affecting the financial and economic situation.
“Many nations have been (withholding) the food they consume to ensure their own survival (survival) of the population as well as the prices of energy, oil are extremely high as well as gas and other fuels, (prices of those) have increased in all areas,” he remarked.
The decision of nations to store their energy, food, and energy production would definitely decrease the supply on the global market, increasing the prices of commodities.
Therefore, at the last regional meeting on coordination for the control of inflation in the past, Minister Karnavian reminded all, particularly regional authorities to be mindful of the impact of the global economy.