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Minister Sri Mulyani Monitors Indonesia's Economy Post-Iranian President Death

Translator

Najla Nur Fauziyah

Editor

Laila Afifa

22 May 2024 17:02 WIB

TEMPO.CO, JakartaMinister of Finance Sri Mulyani monitors the impact of the death of Iranian President Ebrahim Raisi on Indonesia’s economy. According to her, the world’s dynamics are moving rapidly. "We'll see what the results are," said Sri Mulyani when met at the Presidential Palace in Jakarta on Wednesday, May 22, 2024.

Sri Mulyani was reluctant to elaborate further on her statement. When asked about the exchange rate of the rupiah which nearly touched Rp16,000 against the US dollar, the former Managing Director of the World Bank said she would discuss macroeconomic policy and the focal points of fiscal policy with the parliament. "The meeting will become a formal forum to discuss the issue from various points of view," she said.

The rupiah closed at Rp15,999 against the US dollar yesterday and opened stronger at Rp15,980 this morning.

Analysts are observing the oil markets to see how they react to further uncertainty in the Middle East following Raisi's death. The president’s passing worried the financial markets, especially commodities, as Iran's position in the global economy became an increasingly unstable post-drone attack on Israel last month.

Iran is the world’s largest oil producer and further conflict involving the country threatens the stability of the Middle East, especially as it’s seen as supporting the Yemen-based Houthi in blocking international shipping from crossing the Red Sea. 

President Joko Widodo previously hoped that the death of Iranian President Ebrahim Raisi would not affect the global economy, especially oil prices.

“Because once oil prices rise due to the incident, it will spill over on other things, including prices of goods. We hope to avoid such impacts,” said Jokowi during his visit to Batu Taba shelter, Agam Regency, West Sumatra, on Tuesday, May 21, 2024, quoted from a video statement.

DANIEL A. FAJRI

Editor’s Choice: Statistics Indonesia: Iran-Israel Conflict Bears No Significant Impact on Indonesian Trade

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