The World Bank assessed that the war in eastern Europe will have a major impact on the economy of the East Asia and the Pacific. While the region’s dependence on imports from Russia and Ukraine remains limited, the war and harsh sanctions are likely to increase global food and fuel prices. Thus, it estimates that poverty rate will increase in several countries.
However, the Russian offensive against Ukraine will not have significant impact on Indonesia. In fact, Indonesia will receive a windfall. According to the Finance Ministry, state revenues in February rose 37.7% from Rp302.4 trillion last year, mainly driven by soaring commodity prices as a result of the war. (un)