Ukraine War Deepens World Economic Crisis: President Jokowi

TheIndonesia.co - President Joko Widodo said that the war that occurred in February 2022 in Ukraine had deepened the global economic crisis, whereas the world has been severely affected by the COVID-19 pandemic.

"When the world started to recover the economy, last month, in February 2022 there was a war that made all countries dizzy," said President Jokowi in a virtual speech at CNBC Indonesia Economic Outlook 2022 in Jakarta, Tuesday, March 22, 2022.

In February 2022, Russia declared to start a special military operation into Ukraine, which has given rise to global geopolitical tensions to date.

President Jokowi said that in early 2022 the world economy had not fully recovered from the impact of the COVID-19 pandemic. The propagation effect of restrictions on the mobility of people and goods due to COVID-19 has led to a scarcity of energy sources, food shortages, and containers that have the potential to raise inflation.

"This (war) will deepen the world economic crisis and increase world political tensions," he said.

This political tension has led to an increase in the prices of oil, gas, raw materials for fertilizers, and wheat. Therefore, it is feared that inflation will continue to rise.

“These problems are a challenge for many countries, including Indonesia. We must address these challenges very carefully,” he said.

The Head of State called for the importance of collaboration between the government and business actors to implement appropriate policies to accelerate economic recovery. One form of collaboration is the creation of many investments that become a source of employment and the mobilization of sources of inclusive and equitable economic growth.

“We need fast and appropriate policies and effective implementation. What is clear is that society must not become a victim of this global uncertainty," he said.