Government Urged to Establish Industrial Emergency Reserve

Member of Commission VII of the Indonesia's House of Representatives (DPR), Ilham Permana, urged the Ministry of Industry to promptly establish a mitigation system to anticipate geopolitical tensions. The system is intended to serve as a monitoring and rapid response mechanism against supply chain disruptions, fluctuations in the rupiah exchange rate, and spikes in logistics costs.

“The government needs to prepare a national industrial emergency reserve system. This would act as a swift response in the event of unrest or global tensions,” he said in an interview with Hukumonline.

The system, Ilham continued, could take the form of a logistics development center; reserve warehouses for raw materials such as semiconductors, fertilizers, and steel; as well as an industrial emergency response fund.

“This system must be established immediately. The legal framework for this policy can take the form of Regulation of the Minister,” Ilham added.