Golkar Secretary-General Advises Finance Minister on Iran War Economic Impact
Jakarta, CNBC Indonesia - The Secretary-General of Golongan Karya (Golkar) party M. Sarmuji has advised Finance Minister Purbaya Yudhi Sadewa to focus on anticipating the impact of global economic volatility amid rising tensions in the Middle East.
Sarmuji believes the escalation of the conflict between Iran, the United States, and Israel could potentially trigger pressure on Indonesia’s economy, particularly through rising energy prices and US dollar strengthening.
“Given the current situation, it would be better for him to concentrate on mitigating the economic impact from the Iran, US, and Israel conflict,” said Sarmuji, who also chairs the Golkar faction in parliament, at an iftar gathering in Jakarta on Tuesday (10 March 2026).
He explained that if fuel prices rise simultaneously with US dollar strengthening, the impact on the national economy would be very significant.
He noted that such conditions could also increase the government’s energy subsidy burden. With the current fuel subsidy quota, rising global oil prices could cause the subsidy budget to balloon.
“With the quota set now, fuel subsidies will definitely swell. The question is, if fuel subsidies balloon, what will the government do?” he said.
Sarmuji stated that the government ultimately faces two policy choices: raising fuel prices or increasing the subsidy budget to cover the rising costs.
He also highlighted the potential impact of dollar strengthening on Indonesia’s foreign debt payments. He argued that debts denominated in dollars would become more expensive when paid in rupiah if the exchange rate weakens.
For context, since the Iran conflict erupted in early March, the rupiah’s exchange rate against the US dollar has repeatedly weakened to nearly Rp17,000 per dollar.
At the same time, global oil prices also surged and breached the US$100 per barrel level. This condition could potentially exert additional pressure on energy-importing economies like Indonesia.
Based on this, Sarmuji believes the government needs to quickly prepare mitigation measures to anticipate potential global economic pressures.