Joko Widodo, Indonesian president stated his concerns about the Ukraine crisis creating price inflations this friday. The Indonesian government has maintained the domestic price stability so far and is struggling to not disturb the local fuel prices.
Due to recent events the world fuel price breached the critical $100 per barrel benchmark and reached $115 per barrel in just a few days. Indonesia, Southeast Asia’s biggest economy, has managed to suppress the price inflation so far with just an inflation of 2.06% in february 2022.
Despite other countries raising retail prices for fuel, Indonesia has maintained a grip on the fuel price since 2020. The government has supplemented PT Pertamina, biggest oil distributor of Indonesia, to maintain the oil prices. Jokowi stated that the government is unsure of how long it can hold the current prices.
Media reports stated rising prices of tofu, Sugar, beet, soy-based tempeh and other food items. A reduction in palm oil exports has also been implemented to reduce domestic cooking oil price inflations. The Indonesian government and bank have collectively calculated the factors leading to inflation and have reported to maintain food price inflation within 3-5%.
The chaotic situation spreading throughout the world like wildfire is tightening the lifestyle of the common man and is also putting the authorities of countries in very delicate situations. The world is prepared to hear some good news about the crisis but if this situation continues, all citizens will have to brace themselves for major changes in the world’s economy.
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