Bekasi Entrepreneurs Anticipate Economic Impact of Middle East Conflict

Entrepreneurs in the industrial area are worried that tensions in the Middle East could trigger a domino effect on manufacturing activity here, said M. Yusuf Wibisono, chair of the Bekasi Regency branch of the Indonesian Employers Association (Apindo), in Cikarang on Saturday. He said that business circles, particularly in Bekasi Regency, are currently paying closer attention to potential global economic shocks that could spill over to the local industrial sector. “The concerns of Bekasi’s businesspeople regarding the Iran-Israel war mainly relate to the economic impact that might occur,” he said. He noted that manufacturing is the most vulnerable sector, especially for companies still dependent on imported raw materials. Disruption of international trade routes could trigger higher production costs. In addition, several other sectors are also threatened, from energy, mining to agriculture and food. Some risks are already being accounted for by business players. These risks include rises in global oil prices that could increase production and transport costs, as well as shocks to global financial markets that affect the rupiah’s exchange rate. He says they are continuing to monitor developments on the ground. There have been no official reports of a significant jump in logistics costs, although some business players have begun to feel increased operational costs. “At present, there are no official reports about increases in logistics costs due to the Iran-Israel war. However, some entrepreneurs have reported increases in fuel prices and transport costs,” he said. Apindo Bekasi Regency is anticipating the situation by instructing its members to strengthen internal corporate resilience, particularly if the conflict is prolonged. Mitigation efforts are being undertaken to minimise potential impacts on industrial activities. Yusuf also reminded that the global situation remains highly dynamic, so the business world must stay prepared for various possibilities that could occur. “The situation is evolving, Bekasi’s businesspeople must remain vigilant and ready to face the unforeseen,” he said. (KR-PRA)