By: Prabowo Subianto [excerpted from “Strategic Transformation of the Nation: Towards Golden Indonesia 2045”, page 45, 4th softcover edition]
During the COVID-19 pandemic in 2020, a new war unexpectedly broke out in Europe between Russia and Ukraine on February 24, 2022, disrupting global food and energy price stability. These two nations are significant producers of essential commodities such as wheat.
Together, Russia and Ukraine contribute 27% of the world’s wheat production. Indonesia, which relies on imports of 11 million tons of wheat annually for products like instant noodles and bread, also depends on these countries for a significant portion of its wheat. With the conflict impacting production and maritime safety, Indonesia and other wheat-importing countries have had to find alternative sources.
Aside from wheat, Russia is a key exporter of raw materials for fertilizers, producing 19% of the world’s Potassium, 14% of Phosphorus, and 16% of Nitrogen. The conflict between Russia and Ukraine has led to a rise in global fertilizer prices.
Furthermore, Russia is the third-largest exporter of oil and gas globally. The ongoing conflicts in Ukraine and Palestine may further escalate food and energy prices by disrupting global supply chains.
