MPR warns of geopolitical impacts on fiscal and food security

Jakarta (ANTARA) - Vice Chairman of the MPR RI Budget Agency, Johan Rosihan, has reminded that global geopolitical dynamics have a direct impact on the nation’s fiscal condition and food security, so every diplomatic decision must comprehensively consider economic risks.

He explained that disruptions in international relations can affect the trade sector, including potential declines in exports due to tariff and non-tariff barriers, which impact state revenues and economic stability.

“When relations with strategic partners are disrupted, the impact is immediately felt in the trade sector,” he stated in his remarks in Jakarta on Wednesday.

In addition, global instability also has the potential to disrupt supply chains, increase production costs, and pressure productivity in strategic sectors due to dependence on imports of raw materials such as fertiliser and technology.

From a monetary perspective, Johan highlighted the risk of exchange rate weakening due to capital outflows, which could ultimately force the government to increase the budget burden to maintain economic stability.

He stated that global pressures also imply an increase in food and energy subsidies, which could narrow the government’s fiscal space in funding development.

According to Johan, the food security sector is one of the most vulnerable to global turmoil, particularly regarding access to imports, logistics distribution, and fluctuations in production input prices.

“Disruptions in international relations can directly impact access to strategic food imports,” he said.

He assessed that the stability of international relations is an important factor in maintaining the availability and affordability of food, while also protecting people’s purchasing power from global economic pressures.

In the long term, Johan encourages strengthening domestic production, fiscal discipline, and diversification of international cooperation to enhance national economic resilience.

“With a measured and balanced approach, Indonesia is expected to be able to maintain national independence without sacrificing economic stability and public welfare,” he said.