BI: Global Commodity Price Pressures Have a Positive Impact on Indonesia

Jakarta (ANTARA) - Bank Indonesia Senior Deputy Governor Destry Damayanti stated that global commodity price pressures resulting from the US-Israel-Iran conflict have a fairly positive impact on Indonesia.

“So actually, the impact is quite good for Indonesia, because Indonesia is also a producer of coal, we have CPO (Crude Palm Oil), and we also have gold that we can export,” she explained during the Central Banking Forum 2026 in Jakarta on Monday.

The most immediate impact on global commodities is the price of world oil. Although Iran’s oil production accounts for only 5 percent of total global production, the strategic position of the Strait of Hormuz as a distribution route for 20 percent of the world’s oil supply is a crucial factor.

Disruptions in distribution in that strait cause obstacles to oil supplies from the Gulf region, triggering a surge in global oil prices.

Uncertainty regarding the ceasefire agreement between the US and Iran is seen as worsening the situation further.

The failure of negotiations held in Pakistan has caused oil prices to jump to $100 per barrel, followed by weakening currencies at both regional and global levels.

The rise in oil prices also has indirect impacts on other commodities, from gold as a safe haven asset to energy and industrial commodities such as coal, aluminium, and CPO.

The increase in coal prices is also driven by actions from several countries that are beginning to prepare alternative energy sources to anticipate the crisis.

“So this impact is significant, two-sided. Indeed, oil prices are rising, but there are other commodities that are Indonesia’s main exports which are also increasing,” said Destry.