Finance Ministry Monitors Potential Economic Risks from Iran-Israel-US Conflict
Jakarta — The Ministry of Finance has stated that it continues to closely monitor potential risks from the conflict between Iran, Israel and the United States, particularly following the closure of the Strait of Hormuz.
“The government continues to carefully monitor global geopolitical dynamics and various risks that could potentially affect the national economy,” said Febrio Kacaribu, Director General of Economic and Fiscal Strategy at the Ministry of Finance, in a written statement in Jakarta on Monday.
Febrio highlighted that risks to global supply chains, particularly energy and petroleum supplies, as well as increased volatility in global financial markets, are key concerns. Global trade tensions also have the potential to suppress national export performance through weakened external demand and increased logistics costs.
The trade balance registered a surplus of $950 million in January 2026. The surplus was supported by export performance reaching $22.16 billion or growing 3.39 percent year-on-year, driven by non-mining exports. The performance of non-mining exports was driven by the processing industry sector, which grew 8.19 percent year-on-year, notably in palm oil, nickel, iron and steel, as well as high-value-added commodities such as automotive and electronics.
Meanwhile, imports were recorded at $21.20 billion or growing 18.21 percent year-on-year, dominated by increases in raw materials and capital goods, in line with rising domestic production and investment activities.
“The government also continues to strengthen the policy mix to maintain stability and sustainability of national economic growth,” said Febrio.
Risk mitigation efforts are being carried out through accelerating the downstream processing of natural resources and enhancing the competitiveness of high-value-added export products. In addition, the government is also seeking to diversify its main trading partners through various international trade agreements to expand market access and strengthen Indonesia’s external sector resilience amid increasingly complex global dynamics.