Indonesia Can Benefit from Russia-Ukraine Crisis: Academic

TheIndonesia.id - An international relations expert has claimed that Indonesia can benefit from the soaring commodity prices resulting from the ongoing crisis between Russia and Ukraine.

Lecturer at Paramadina Graduate School of Diplomacy Mahmud Syaltout said Indonesia’s status as producer of various commodities can help the country gaining something from the conflict happening in the eastern part of Europe.

“Indonesia is known as producer of gold, silver, aluminum, and nickel whose prices are increasing after the escalation in Russia-Ukraine conflict. If we can optimize this opportunity, it won’t only save our economy from deficit due to surging oil and gas prices, but we can make a profit,” Syaltout said on Tuesday, March 1, as reported by Antara.

According to him, based on research, not all Asian countries suffered from economic loss and trade crisis during the Cold War – instead, some states benefitted from interstate conflicts and wars.

And in order to gain the most benefit from the current global affairs, Indonesia needs to prepare good strategy related to mining, both in upstream and downstream, and this also includes smelter construction, among others.

“This is where Indonesia's Free and Active Foreign Policy can show its relevance and significance,” the academic said.

However, Syaltout also warned that a prolonged crisis between Russia and Ukraine will negatively impact Indonesia as an oil importer because if oil and gas process continue to soar, it will put more pressure on the state budget – especially as the world continues to grapple with the COVID-19 pandemic.