The chairman of Indonesia\u2019s House of Representatives Commission XI,\nMukhamad Misbakhun, has urged the government to quickly prepare concrete\npolicy responses to dampen potential pressure on the national economy,\nparticularly during the Ramadhan and Eid al-Fitr period. This comes amid\nescalating conflict between the United States-Israel and Iran, with both\nsides conducting retaliatory strikes.<\/p>\n
Misbakhun believes that the escalation of Middle East conflicts could\ninvolve key countries in the global energy supply chain, potentially\ntriggering a surge in oil prices and financial market volatility. He\nargues that without prudent anticipation, this could weaken the rupiah,\nburden energy subsidies in the state budget, and drive up the prices of\ngoods and services domestically.<\/p>\n
\u201cRamadhan is always characterised by increased consumer spending. If\nat the same time global energy prices surge and exchange rates\nfluctuate, then pressure on domestic inflation will be increasingly\nfelt. Therefore, the government must act quickly with clear fiscal\nscenarios and concrete stabilisation measures,\u201d Misbakhun told reporters\non Monday, 2 March 2026.<\/p>\n
He further requested that the Finance Ministry prepare realistic\nemergency fiscal scenarios and consider adjusting the state spending\nposture should world oil prices remain at elevated levels. He believes\nthat important measures that can be taken include strengthening fiscal\nreserves and sharpening spending priorities, thereby maintaining fiscal\nspace without compromising social protection programmes.<\/p>\n
Misbakhun also asked the Finance Ministry and Bank Indonesia to\nenhance coordination to maintain exchange rate stability and financial\nmarket liquidity. This is because global shocks often trigger capital\noutflows and pressure on the rupiah, so fiscal and monetary policy mixes\nmust be prepared within an integrated response framework.<\/p>\n
\u201cRupiah stability and sufficient banking liquidity must not be\ndisrupted. The business world needs certainty, whilst the public needs\nreassurance. Therefore, fiscal and monetary policies must work in tandem\nto calm market volatility,\u201d said Misbakhun.<\/p>\n
Additionally, the Golkar politician urged the government to ensure\nenergy supply availability and smooth domestic logistics distribution\nremain intact. He believes that should world oil prices surge\nsignificantly, the government must prepare buffer measures so that\ndomestic fuel prices do not immediately trigger cascading effects on\nfood prices and other basic necessities.<\/p>\n
\u201cWhat we must protect is the purchasing power of the public. They\nmust not face layered price increases whilst carrying out Ramadhan\nworship and preparing for Eid al-Fitr,\u201d Misbakhun said.<\/p>\n
Misbakhun stated that Commission XI of the House of Representatives\nwill intensively monitor the government\u2019s policy response to\ndevelopments in the conflict, including its impact on energy subsidies,\ninflation, exchange rates, and the stability of the national financial\nsystem.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-urged-to-prepare-concrete-policies-to-mitigate-iran-war-impact-1772438390", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }