Falling Consumer Confidence: Indonesian Residents Cut Spending and Fear Job Insecurity

Jakarta, CNBC Indonesia — A CNBC Indonesia Research economist, Maesaroh, has noted that surging global crude oil prices resulting from the closure of the Strait of Hormuz and geopolitical conflict between Iran, the United States and Israel are having major repercussions for the global economy, including Indonesia.

Supply chain disruptions affecting energy, fertiliser and food commodities are becoming increasingly concerning, as they threaten to drive up global oil and food prices, which in turn will push inflation higher. For Indonesia, these conditions could result in continuously rising import costs for oil and food, straining subsidies for fuel and the national budget.

Additionally, weakening of the rupiah’s exchange rate will further increase the fiscal deficit, weakening domestic economic activity and threatening Indonesia’s economic growth.

From an investment perspective, geopolitical turmoil will also impact global financial markets, including Indonesia, amid investor concerns about global economic and geopolitical developments.

Investors are currently beginning to divest from risky assets, including emerging markets, and are shifting towards safe-haven instruments or choosing to hold cash reserves.

The full analysis of the impacts of geopolitical conflict on the economy, financial markets and central bank policy was discussed by Syarifah Rahma with CNBC Indonesia Research economist Maesaroh during Squawk Box CNBC Indonesia (Friday, 13 March 2026).