Airlangga Says Iran War Will Disrupt Indonesia's Logistics and Tourism

Jakarta — Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that a rise in global oil prices is unavoidable following the outbreak of conflict between Iran, the United States and Israel.

Airlangga noted that oil supplies will certainly be disrupted due to the closure of the Strait of Hormuz, alongside the ongoing conflict in the Red Sea. Everything will depend on the duration of these confrontations.

“Oil prices will inevitably rise, just as they did during the Ukraine war. However, this time oil supply from the United States will also increase and OPEC will increase its capacity,” Airlangga said on Monday (2 March 2026).

The minister emphasised that oil price increases cannot be avoided. For Indonesia, Airlangga disclosed that the government has already secured oil supplies from countries outside the Middle East, including through a memorandum of understanding (MoU) between Indonesia’s state-owned oil company Pertamina and US oil companies Exxon and Chevron.

When asked whether Indonesia would source oil from Russia, Airlangga merely stated that the government would monitor oil availability from producers capable of exporting.

“Of course we will monitor which sources are available and which can be imported,” he said.

Beyond oil prices, Airlangga also highlighted the impact on Indonesia’s transportation and logistics sectors. He also noted that tourism would suffer significantly, as tourist arrivals from the Middle East would decline.

“First, oil supply will certainly be disrupted. Second, transportation and logistics. And third, of course we are seeing that tourism will be severely affected,” he explained.

Regarding the impact on Indonesia’s exports, Airlangga could not provide certainty. The effect on Indonesian exports will depend on how long the conflict lasts. According to him, the government will continue monitoring developments in the Middle East conflict.

“It depends on how long the war lasts. We will just continue to monitor whether this conflict is brief or lasts 12 days or extends further,” he said.