VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Russia-Ukraine conflict may, in the middle to long term, potentially trigger deglobalization, wherein nations across the world will no longer rely on the global supply chain, Foreign Affairs Deputy Minister Mahendra Siregar said.

This is because the sanctions currently imposed on Russia have made nations across the world think about the possibility of facing similar sanctions in the future, which would affect food and energy availability.

"Within the context, all nations will look at their national capability to produce food on their own, both domestically or in regions," he said during an online discussion on Thursday.

During the discussion on ‘Russia-Ukraine Conflict: Economic Sanction and Global, Regional, and Local Implications,’ he estimated that international payment systems for currencies beyond the dollar and euro could appear.

This would be done to mitigate and minimize the risk from Russia's blockade within the SWIFT payment system.

"This will complement the international payment system based on the dollar and euro, which may lead to dedollarization steps in the future," he said.

In addition, the conflict in Ukraine and sanctions against Russia will affect the nation’s export and import activity with the two nations.

Beyond the Russia-Ukraine conflict, Indonesia should prepare for the economic cold war between the United States and China, Siregar opined.

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This is because the situation may force Indonesia to choose sides despite its free and active role in international politics.

However, the economic cold war may also prove beneficial for Indonesia.

For instance, the nation can help reduce the tension from the economic cold war.

Moreover, within the context of economic growth and reformation speed for investment climate, the nation has a large opportunity to leverage its political condition for the benefit of sustainable economic growth. (Antaranews)