Sunday, February 25, 2024 | 04:24 WIB

Businesses fear impact of the Israeli-Palestinian war on Indonesian economy

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Jakarta, IO – The Indonesian Employers Association (Apindo) said the Israeli and Palestinian war could have a negative impact on the Indonesian economy and business scene. The most immediate one would be the spike in energy prices.

Apindo head of Manufacturing Industry Division Bobby Gafur Umar explained that the increase in energy prices would have an impact on the cost of industrial raw materials. According to him, this can cause disruption in production, per CNNIndonesia, Thursday (12/10).

“If it (raw materials) are expensive and the goods are not available like during the pandemic, then it could disrupt the climate for business growth,” he said.

In addition, Apindo chairwoman Shinta Kamdani said that the impact of the war would also have an impact on the rupiah exchange rate. She advised the government to maintain the stability of the rupiah exchange rate.

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“Actually, this is all related, right now, Indonesia itself is quite good in terms of macro prudential. But indeed, conflicts like this will definitely have an indirect impact,” said Shinta.

The situation in the Palestine and Israel has escalated when Hamas, a Palestinian militant group, launched a massive, coordinated attack on Saturday (7/10). In response, the Israeli government has declared war. In almost a week, thousands of people have been killed and injured as a result of the armed conflict. (un)

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