Bali (ANTARA) - The raging armed conflict between Palestinian Hamas and Israeli forces can pose threats to the economy of Indonesia, according to Muhammad Chatib Basri, who served as Indonesian Finance Minister during the 2013-2014 period.
According to Basri, the continuation of the conflict could result in three problems threatening Indonesia's economy, one of which is related to the possibility of the emergence of an oil war that could affect the prices of fuel.
"An oil war could affect the prices of fuel. The question is whether the prices will be adjusted or not. This would be related to subsidies," he remarked during the Regional Chief Economist Forum in Nusa Dua, Bali, on Friday.
Basri explained that the second problem concerns the possibility of a deficit in the State Budget (APBN) increasing on account of the government implementing a subsidy regulation.
The inflation rate is projected to increase by four percent if the government decided to implement a regulation related to fuel subsidies, he noted.
Basri further remarked that the ongoing devastating war could also lead to an increase in the prices of rice that significantly affect the people of Indonesia.
"Bearing that in mind, we can say that cash aid and social assistance are vital. It is also highly necessary to pay close attention to the management of the APBN in relation to the provision of fuel subsidies and social assistance," he remarked.
According to latest data from the Palestinian Ministry of Health in Gaza on Friday, the aggression launched by the Israeli occupation forces in Gaza since October 7, 2023, has claimed a total of 17,177 lives in Palestine's side.
The ministry's spokesperson, Ashraf Al Qudra, noted that about 70 percent of the war victims were children and women, adding that as many as 46 thousand people suffered injuries due to the Israeli attacks on the besieged enclave of Gaza.
He also noted that at least 290 medical workers have died, 103 ambulances were destroyed, and 160 health care centers were targeted by Israel, with 20 hospitals and 46 primary treatment centers shutting down due to the current situation.