REPUBLIKA.CO.ID, NUSA DUA -- Senior economist who is also a former finance minister, Muhammad Chatib Basri, said the current conflict between Israel and Hamas could pose economic risks for Indonesia.

According to Chatib, there are three risks that Indonesia will face if the conflict is not over. First, wars in the Middle East are vulnerable to oil wars that have implications for world oil prices and fuel in Indonesia.

“The oil war is probably the implication of fuel prices. The question is whether fuel prices will be adjusted later or not. So what is absorbed is the subsidy,” Chatib said at the Regional Chief Economist Forum event in Nusa Dua, Bali, on Friday (8/12/2023).

Then, the second risk is that the arrangement of fuel subsidies will create a deficit in the increased State Revenue and Expenditure Budget (APBN). In fact, Chatib projects that if the fuel subsidy policy is implemented, the inflation rate will rise by about 4 percent.

The third risk that will occur is the rising price of rice. According to Chatib, this will greatly affect Indonesians, including in the aspect of distributing social assistance from the government.

“That's why BLT, social assistance is so important. From fuel subsidies, let alone social assistance of course, then the management of the state budget will be very important here,” Chatib said.

According to the latest data from the Palestinian Health Ministry on Friday, the number of Palestinian deaths caused by Israeli attacks in the Gaza Strip has increased to 17,177 since October 7, 2023.

Palestinian Health Ministry spokesman Ashraf al-Qudra said about 70 percent of the victims were children and women. Another 46,000 people were wounded by Israel's onslaught on the blockaded Palestinian territory.

He reported at least 290 medics killed, 103 ambulances destroyed and 160 health care centers targeted by Israeli attacks, while 20 hospitals and 46 primary care centers were forced out of service.

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