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Food inflation is dangerous for developing countries such as Indonesia

Indonesian President Joko Widodo, seen here to the left of US President Joe Biden during a Southeast Asian summit in the White House in May, has hinted that he may try to launch a peace initiative during his upcoming visit to Europe. .

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The Indonesian president says the war in Ukraine must end as it raises food and energy prices and puts developing countries like Indonesia at risk.

“The most important thing that excites me is food prices. So we want the war in Ukraine to be stopped, negotiated so that we can concentrate [on] the economy, “President Joko Widodo told CNBC in an exclusive interview in the city of Serang in Banten province on Friday.

“If not, it will never end, it is dangerous for countries, especially developing countries.”

The Jocks, as he is popularly called at home, said the war must be resolved through negotiations and dialogue.

The Indonesian leader attended the meeting of the Group of 7 Advanced Economies at the invitation of the host country Germany from June 26 to 28. Russia’s Tass news agency reported last week that Djokovi would meet with President Vladimir Putin on June 30th.

“After the G7, I will visit several countries that are connected [to the] food problem, “he told CNBC’s Martin Sung. Djokovi declined to confirm whether he was visiting Russia or Ukraine, which are among the world’s largest grain producers and exporters.

There is a problem here and the problem is war. In the G20, we must also invite Ukraine so that we can solve the problem.

Joko Vidodo

President of Indonesia

Rivalry between the United States and China

The United States and China are fighting for dominance in Southeast Asia, with the United States calling the Indo-Pacific region “the heart of America’s great strategy,” and China claiming territorial claims over almost the entire South China Sea.

Asked if Indonesia was caught in the geopolitical struggle between the United States and China, Djokovi insisted that his country was a “close friend” with both.

The Indonesian president said Indonesia’s trade relations with the two countries remain strong and that the United States and China are strategic partners of the largest economy in Southeast Asia.

We want this region to be peaceful so that we can build our country and have better economic growth. Rivalry, let alone war, will not benefit any country.

Joko Vidodo

President of Indonesia

Bilateral trade in US goods with Indonesia amounted to more than $ 37 billion in 2021, while bilateral trade in services was about $ 2.4 billion in 2020, according to the State Department.

China is Indonesia’s largest trading partner, valued at $ 124.34 billion in 2021, according to Chinese customs, according to the Indonesian embassy in China.

On whether the Quad Strategic Alliance or the AUKUS nuclear and security agreement that Australia signed with the United Kingdom and the United States last year risked angering China, Djokovi said: “We do not want our region to become a platform for rivalry. [between] big countries “.

“We want this region to be peaceful so that we can build our country and have better economic growth. Rivalry, let alone war, will not benefit any country.

Relations with Australia

Following Australia’s decision to acquire nuclear submarines under the AUKUS agreement, Indonesia said it was “deeply concerned” about the “ongoing arms race and the prediction of power in the region”.

Pressed over whether Indonesia’s relations with Australia have deteriorated as a result of AUKUS, Jokovi said: “The most important thing is that we want Indonesia and Australia to have [a] better relations in the future, in investment, in trade and others, we want to be better. “

He expressed hope that relations with Canberra could improve under new Prime Minister Anthony Albanez.

“We both want our relationship to be better, closer and more concrete in investment and trade. “Because we already have Indonesia, Australia CEPA, so this is our common goal, to be open so that goods from Australia can enter Indonesia, goods from Indonesia can enter Australia,” he said.

“I think it’s a very good relationship.”

– CNBC’s Weizhen Tan contributed to this report.