{
    "success": true,
    "data": {
        "id": 1618821,
        "msgid": "middle-eastern-turmoil-pressures-indonesian-economy-deficit-threatened-1773716068",
        "date": "2026-03-17 09:19:00",
        "title": "Middle Eastern Turmoil Pressures Indonesian Economy: Deficit Threatened",
        "author": "Sakina Rakhma Diah Setiawan",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Economy",
        "summary": "Iran's closure of the Strait of Hormuz amid escalating conflict with the United States has triggered a significant shock to global energy markets, with crude oil prices surging approximately 27 per cent between late February and early March 2026. The disruption poses considerable risks to Indonesia's economy through increased inflation pressures, higher production and distribution costs, and fiscal constraints, as the strategic waterway handles about 25 per cent of global maritime oil trade with limited alternative pipeline capacity.",
        "content": "<p>JAKARTA \u2014 The closure of the Strait of Hormuz by Iran in an\nescalating conflict with the United States has triggered a major shock\nto global energy markets.<\/p>\n<p>According to the Economic and Social Research Institute (LPEM) at the\nFaculty of Economics and Business of the University of Indonesia (FEB\nUI) in a report on the Impact of the Iran-US War on Indonesia\u2019s Economy,\nthis strategic shipping route represents one of the most crucial\nmaritime chokepoints in the world, with approximately one quarter of\nglobal oil trade passing through it daily.<\/p>\n<p>This disruption to energy distribution was immediately reflected in\nsurging commodity prices. During the period from 27 February to 9 March\n2026, the price of Brent crude oil increased to approximately US$91.8\nper barrel, or about 27 per cent.<\/p>\n<p>The rise in energy prices has the potential to trigger global\ninflationary pressures and increase production and distribution costs,\nincluding in the food sector.<\/p>\n<p>This situation occurs when many developing nations are still facing\nlimited fiscal space and debt payment obligations, making their capacity\nto absorb the surge in energy prices increasingly constrained.<\/p>\n<p>LPEM FEB UI stated that the Strait of Hormuz plays a central role in\nthe global energy supply chain. In 2024, total oil transported through\nthe strait reached approximately 20 million barrels per day (bpd),\nequivalent to 25 per cent of global maritime oil trade.<\/p>\n<p>However, alternative energy distribution routes through land\npipelines have limited capacity. Of the oil volume passing through the\nStrait of Hormuz, only approximately 4.2 million bpd can be diverted\nthrough pipeline networks in Saudi Arabia and the United Arab\nEmirates.<\/p>\n<p>Approximately 70 per cent of crude oil passing through the Strait of\nHormuz is destined for Asian countries such as China, India, and\nJapan.<\/p>\n<p>Beyond the surge in energy prices, the Iran-US conflict is also\nreflected in rising global logistics indices. Oil tanker indices such as\nthe Baltic Clean Tanker Index and Baltic Dirty Tanker Index have\nincreased following the conflict, whilst the World Container Index has\nalso shown an upward trend since the beginning of the escalation.<\/p>\n<p>LPEM FEB UI noted that increased global geopolitical uncertainty is\nplacing pressure on Indonesia\u2019s economy through a number of transmission\nchannels.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/middle-eastern-turmoil-pressures-indonesian-economy-deficit-threatened-1773716068",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}