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“The position of Russia and Ukraine within the world market is kind of strategic. Russia is the second-largest exporter of crude oil. They’re additionally the world’s third-largest coal exporter, in addition to the world’s largest wheat exporter,” Yuwono famous throughout a press convention right here on Monday.
Furthermore, Russia is the seventh-largest exporter of liquefied pure fuel (LNG) on this planet, he remarked.
This reality proves that within the world order, Russia has a big affect on different international locations.
In the meantime, Ukraine can be the world’s largest exporter of vegetable oil, the world’s fourth-largest exporter of corn, and the world’s fifth-largest exporter of wheat.
Based on Yuwono, the struggle between Russia and Ukraine will have an effect on the availability chains of a number of commodities by the 2 international locations.
“Given the strategic roles of the 2 international locations, I quote the IMF that the struggle between Russia and Ukraine has led to a rise in commodity costs in a number of international locations within the western hemisphere. This can have an effect on inflation,” he said.
Associated information: Indonesia prepares for financial affect of Russia-Ukraine battle
Furthermore, the struggle will have an effect on the scenario in Sub-Saharan Africa, as 80 % of their grain provide comes from the 2 warring international locations.
The struggle between Russia and Ukraine can even trigger a rise in commodity costs and have an effect on the tourism sector in Center Japanese and African international locations, the place each areas are vacationer locations for Russians and Ukrainians.
“Therefore, the struggle will, in fact, have an effect on revenues within the Center East and North Africa,” Yuwono famous.
Within the meantime, the affect of struggle on international locations in Europe will are inclined to disrupt the availability of pure fuel and trigger fiscal stress in these international locations.
In the meantime, the affect of the struggle between Russia and Ukraine on Indonesia will result in a rise within the value of non-oil and fuel commodities, particularly coal and CPO, which can additional have an effect on Indonesia’s exports.
“The rise in oil and fuel costs can even have an effect on our oil and fuel imports in March 2022. In future, the affect of the struggle on value hikes on a world scale will rely on how lengthy the struggle will final,” Yuwono said.
Associated information: Indonesian G20 ought to anticipate impacts of Russia-Ukraine struggle: INDEF
Associated information: Indonesia’s price range deficit could widen because of Russia-Ukraine struggle: Indef
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