Indonesian Political, Business & Finance News

Village in the Midst of the World's Geopolitical Storm

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Village in the Midst of the World's Geopolitical Storm
Image: MEDIA_INDONESIA

“Peace is not merely the absence of war. It is a virtue,” wrote the philosopher Baruch Spinoza.

It has been more than a month since geopolitical tensions in the Persian Gulf region have shown no signs of abating. The escalation of conflict between Iran, Israel, and the United States is no longer limited but is beginning to widen with the involvement and responses from several other countries in the region and internationally. This conflict is not merely a regional one but has broad implications for global economic stability. These tensions relate to political interests, security, regional influence, and global geopolitical rivalry.

To date, these tensions show no signs of ending and even have the potential to persist for a longer period. This uncertainty raises concerns about ongoing impacts on international trade, energy stability, and the global economy. The situation also increases the risk of disruptions to the world supply chain, which could directly lead to rising commodity prices and inflationary pressures in various countries.

Although this conflict is occurring thousands of kilometres away from Indonesia, its effects can still be felt by countries in Southeast Asia. The conflict in the Middle East has disrupted international trade routes, particularly in the Strait of Hormuz. Currently, that strategic route is congested. Global oil supplies are beginning to be hampered, and global energy prices tend to rise. This forces many countries to take emergency measures.

FROM GLOBAL PRESSURE TO LOCAL RESILIENCE

For Indonesia, if the tensions in the Middle East persist for a long time, the impacts could be felt in domestic goods prices. The conflict in that region has the potential to drive up world oil prices. When oil prices rise, transportation and production costs also increase, which ultimately drives up the prices of various goods and people’s basic needs.

Various policy options are being prepared, ranging from restrictions on fuel consumption, energy price increases, to the implementation of work from home (WFH) to reduce mobility and fuel usage.

In Malaysia, the government has begun reviewing restrictions on fuel subsidies and promoting energy efficiency. Singapore is strengthening energy-saving policies and optimising public transportation to reduce fuel consumption. Thailand is taking steps to control energy prices and launching electricity-saving campaigns, while Vietnam is promoting the use of alternative energy and consumption efficiency in the industrial sector. Some countries have even declared an energy emergency status and reduced certain public activities to curb energy use.

Other impacts can also be felt in the financial sector. Global uncertainty often causes the rupiah exchange rate to weaken against the US dollar due to security factors and international market sentiment. This situation shows that when a global crisis occurs, responses are not only at the macro policy level but also demand resilience at the local level.

In the context of Indonesia, strengthening the economic and social foundations at the village level becomes highly relevant, because villages play a strategic role in maintaining food stability, local-based alternative energy, and the sustainability of community economies amid uncertain global pressures.

National resilience is not only related to military defence, political stability, and energy alone. National resilience also concerns a nation’s ability to ensure food availability, economic stability, and public welfare. This is where villages hold a strategic role. Villages are centres of food production, bases of people’s economy, and social spaces where values of mutual cooperation grow and are maintained. When villages are strong, the foundation of national resilience also becomes more solid.

VILLAGES AS A FORTRESS FACING GLOBAL CRISES

The experience of several years ago provides an important lesson. When the COVID-19 pandemic swept the world, many economic sectors in cities experienced sharp contractions. Industrial activities slowed, trade was disrupted, human mobility was restricted, and millions of workers lost their jobs. In that situation, it was evident that when the global system is shaken, local strength often becomes the main support.

One of the main contributions of villages is seen in their ability to maintain food resilience. When food distribution in cities was disrupted, villages were still able to produce various staple needs such as rice, vegetables, and livestock products. Farmers in villages continued working in fields and gardens, so food supplies for the community remained available. Many agricultural products from villages were then sent to cities to meet community needs during the activity restriction period.

In addition, village communities also demonstrated strong social solidarity. When many workers lost their jobs and returned to their hometowns, village communities helped them adapt back to village life. Many families helped each other in meeting daily needs, either through mutual cooperation or sharing harvest yields.

Overall, the COVID-19 pandemic showed that villages have a strategic role in maintaining social and economic stability. When cities experienced a decline in economic activity due to social restrictions, villages became places of survival for many people. Through food resilience, community solidarity, and innovations carried out by village governments and communities, villages were able to provide real contributions in helping people get through the crisis period.

This experience reinforces that national resilience cannot rely solely on the global economic system or growth centres in urban areas but must also be supported by independent and sustainable local strength. Therefore, strengthening villages is not merely a development choice but an absolute necessity.

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