Coordinating Minister Airlangga: US-Iran conflict risks triggering fuel price rises

Jakarta — Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that conflict between the United States and Iran could trigger a rise in domestic fuel prices.

The impact would be driven primarily by disruption to global oil supply resulting from the closure of the Strait of Hormuz. The closure of this critical shipping route is expected to push up global crude oil prices, which would eventually affect energy prices in various countries, including Indonesia.

“Fuel prices will automatically rise, just as they did during the Ukraine war. However, this time supply from America will also increase, and OPEC will also expand its capacity,” Airlangga said during a meeting at his office in Jakarta on Monday.

According to him, price pressures remain manageable because oil supply from the United States is increasing and the Organisation of the Petroleum Exporting Countries (OPEC) is also boosting production capacity.

The government has taken precautions against potential supply disruptions from the Middle East by signing a memorandum of understanding (MoU) to secure oil supplies from outside the region. This includes efforts by state-owned enterprise PT Pertamina to establish partnerships with several American energy companies.

“The government already has an MoU to obtain supplies from non-Middle East sources. For example, Pertamina recently signed an MoU with America, several with Chevron, with ExxonMobil, and others,” said the Coordinating Minister.

The Islamic Revolutionary Guard Corps (IRGC) reportedly closed the Strait of Hormuz amid escalating tensions in the Middle East on Saturday 28 February 2026. On the same day, the United States and Israel launched a series of attacks against multiple targets in Iran, including the capital Tehran, causing building damage and civilian casualties.