Jakarta, Klinik Farma – President Joko Widodo (Jokowi) highlighted the changes in the global constellation due to shifts in geopolitical currents that are challenging the entire world, including Indonesia.
According to him, this geopolitical shift has created a fragmented model of international cooperation. For example, pulling a manufacturing supply chain into your country or moving it to another country is considered a friend.
“Global fragmentation has hampered the flow of global trade and investment and weakened the global economy,” he said while delivering a government statement on the 2024 state budget bill and financial notes at the parliament complex on Wednesday (August 16). 2023).
In his assessment, supply chain disruptions caused by global fragmentation have increased the risk of global food, energy and financial crises. In addition, escalating geo-economic tensions have also led to a trend towards embargoes and trade barriers on a number of vital commodities such as semiconductors, minerals, and even restrictions on capital flows.
“The global constellation must be tackled with an accurate and proactive political strategy, not mediocre ones,” he said.
Jokowi also stressed that economic and fiscal policies must be able to transform the economy to meet the challenges of today and the future. He added that food and energy security and the transformation of production are very important.
“On the other hand, the defense industry must be built on a competitive basis to meet Indonesia’s defense and security needs,” he said.
[Gambas:Video CNBC]
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