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The Ukraine invasion and the economic sanctions against Russia are putting Indonesian manufacturers in a tight spot, as increasing import costs eat into profit margins. Economists are saying it will only be a matter of time before firms pass on costs to customers.
Prices of war-impacted commodities like cereals, oil, gas, steel and coal have soared over the last two months since Putin ordered his troops to invade Ukraine in late February, worsening already high prices induced by increasing global demand amid the COVID-19 recovery.
Singapore-based think-tank Oxford Economics said industries in Indonesia, like in many other countries, have suffered from higher input costs as geopolitical tensions led to more supply shortages and trade disruptions.
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