TEMPO.CO, Jakarta – Finance Minister Sri Mulyani Indrawati during her appearance as a key speaker in a University of Indonesia public lecture on Monday reminded the audience that the series of conflicts that emerged in parts of the world lately had drastically shifted the global economic map.
The geopolitical conflicts, among others, are the open war between Russia and Ukraine and the recent heated ties between China and Taiwan, which both have helped change the general relations between countries.
“Remarkable escalations will surely affect security but also from the political and economical side of things,” she said in the online public lecture on August 8, 2022.
In the global situations that she mentioned, countries would often utilize the instrument of the economy and not just the use of weapons, which is why the effects of the Russia-Ukraine war posed a direct effect on Indonesia.
“Because Russia and Ukraine, in this case, are producers of various important commodities, and in this geopolitical war, economic instruments have become the instruments of war,” said Sri Mulyani.
Moreover, conflicts between these countries are usually proxy wars between geopolitical blocs. This condition causes insecurities to envelope other all countries and threatens relations between countries.
Currently, she said, a number of countries are starting to review the relationship between countries. They have a tendency to seek the potential of their internal strengths to increase their resilience and enrich their economy.
“This means that protectionism will get stronger, the blocs will become very strong, investment and trade relations will no longer be based on the flow of goods and capital, as well as free people, but will also take into account the geopolitical aspect,” Sri Mulyani insisted.
ARRIJAL RACHMAN
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