Need to Anticipate the Impact of the Middle East Conflict on Supply Chains and the Rupiah

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Need to Anticipate the Impact of the Middle East Conflict on Supply Chains and the Rupiah
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Please note that this article was automatically translated using Microsoft Azure AI, Open AI, and Google Translation AI. We cannot ensure that the entire content is translated accurately. If you spot any errors or inconsistencies, contact us atResidents shop in Tehran, Iran, on Tuesday . Iran asserts that the limited attack on Israel was carried out in self-defense following Israel's attack on the Iranian consulate in the Syrian capital, Damascus.

Referring to Jakarta Inter Spot Dollar data at the market's close on Friday , the rupiah closed at the level of Rp 16,280 per US dollar, or a depreciation of 5.44 percent compared to the year-end closing in 2023. In fact, based on settlement data as of April 18, 2024, foreign investors in the domestic financial market have recorded a net sell-off of up to Rp 10.64 trillion.

"This is important because if we look at it from an international political economic approach, the foreign policy regime will not change significantly as long as there is no change in the main US leader," he said in an online Public Discussion of Women Economists with the theme"Economic Policy and Fate in the Midst of Global War Tensions", on Saturday .Employees check the stock of US dollars at the foreign exchange counter of PT V8 Valasindo in Jakarta, on Sunday .

The strengthening of the US dollar has caused the exchange rate of the Indonesian rupiah against the US dollar to erode. This can lead to an increase in energy costs and logistics expenses, considering that Indonesia's export, import, and investment components have been integrated with the global economy.Therefore, Indonesia should strengthen its economic fundamentals by increasing national economic growth above 5 percent.

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