Former Vice President Jusuf Kalla Warns of Economic Impact of US-Iran Conflict on Indonesia
Former Vice President Jusuf Kalla has warned of the economic consequences that escalating conflict between the United States, Israel, and Iran will have on Indonesia. Speaking to journalists at his residence in the Kebayoran Baru area of South Jakarta on Sunday, 1 March 2026, Kalla—commonly known as JK—identified rising oil prices as the first and most immediate impact Indonesia will experience.
“First, of course, oil prices will rise. That is certainly first. Logistics between the Middle East and us will be entirely disrupted,” he stated.
According to Kalla, the conflict will also affect hundreds of thousands of Indonesian citizens in the region. “There are currently hundreds of thousands of Indonesians, tens of thousands of Indonesians performing umrah, for example, who cannot return at present,” he said.
Beyond immediate price impacts, Kalla warned that the escalation could disrupt Indonesian exports to other nations and impair oil imports. War creates fear among nations, prompting them to prepare for potential conflict spillover. “The problem is that we usually import oil from the Middle East because we have a shortage, and now it will definitely stop. So our economy will be affected there,” Kalla explained.
Kalla urged the government to exercise caution should the US-Israeli-Iranian conflict persist for an extended period. He noted that import-export logistics systems traversing the Middle East, both to southern and northern regions, will be impacted. Indonesia, as a southern region nation, will bear the consequences.
He estimated Indonesia’s fuel reserves are sufficient for approximately three weeks. Should the conflict prolong, Indonesia risks experiencing fuel shortages. “So be careful about fuel difficulties within perhaps a month,” he cautioned.
Kalla noted that supplies from Gulf region nations could be cut off, although alternative supplies from Singapore might remain available.
He attributed this risk to Iran’s potential retaliation against US-Israeli aggression by attacking American military bases across the Middle East. “That has effects including, besides our trade relationships being severed in the Middle East. Because it’s not just Iran—Iran attacks Kuwait, attacks Doha, attacks Dubai because there are American bases there. But the effects reach those nations,” he explained.
According to Kalla, the impact of US-Israeli-Iranian conflict may not be felt immediately. “But within a week, it will be felt,” he said.