Highlighting Middle East Conflict Impact, Ibas Urges Strengthening of Energy and Economy
Deputy Speaker of the People’s Consultative Assembly Edhie Baskoro Yudhoyono (Ibas) has expressed deep concern over the escalating armed conflict involving Iran, Israel and the United States.
Ibas believes this situation risks expanding global geopolitical instability and imposing serious pressure on the world economy, including Indonesia. According to him, conflict in this strategically important global energy-producing region affects not only directly involved nations but also has broad consequences for energy stability, international trade routes, global inflation and regional security.
“The world today faces serious uncertainty. When armed conflict occurs at the centre of global energy, its impact spreads to all countries, including Indonesia,” Ibas stated in a statement on Monday (2 March 2026). “We must be vigilant, responsive and strategic,” he added.
Strait of Hormuz: Critical Point for Global Energy Security
Ibas provided sharp analysis of the strategic position of the Strait of Hormuz in the Middle East as the world’s most vital energy trade route. Given Iran’s direct border with this narrow strait, conflict escalation risks triggering distribution obstruction or even closure of the passage.
The Strait of Hormuz is the ‘lifeblood’ for approximately 20 to 30 per cent of global daily oil consumption and the main route for Liquid Natural Gas from Qatar. “If stability in the Strait of Hormuz is disrupted, the world will face a drastic supply shock. For Indonesia, this is not merely a figure in the stock market but a genuine threat to industrial operational costs and fuel availability at the retail level,” explained the IPB University doctorate holder.
“We must recognise that disruption in that strait can drive crude oil prices far above our state budget macroeconomic assumptions,” he added. Beyond crude oil, disruption on this route will also impact the global supply chain systematically. Rising shipping insurance costs and rerouting of tanker ships will significantly increase international logistics costs. This will trigger a multiplier effect on import prices and industrial raw materials domestically, ultimately potentially constraining national manufacturing sector growth.
Real Impact on National Economy and Energy
Ibas explained that Indonesia, as a country still importing part of its energy needs, is highly vulnerable to spikes in global oil prices. He predicted that increases in global energy prices could trigger a chain of negative impacts, including:
— Pressure on the state budget through increased energy subsidies
— Inflation in key sectors including food and transport
— Declining purchasing power from inflation
— Obstruction of exports and imports through tension in strategic international shipping lanes disrupting the vital national trade artery
“We must anticipate the ripple effects of this global economy with measured steps and precisely targeted policies to maintain the stability of national economic growth,” Ibas stated firmly.
Strategic Recommendations for Government
Addressing these dynamics, Ibas emphasised that Indonesia must not merely be reactive. He offered three pillars of strategic action.
The first pillar is Strengthened Energy Resilience. This encompasses accelerating development of new and renewable energy; diversifying energy import sources to reduce single dependence; and increasing domestic energy production and strengthening national strategic energy reserves.
Second is Economic Stability and Protection of Citizens. This pillar consists of anticipating inflation through tight coordination of fiscal and monetary policy; safeguarding the purchasing power of citizens, particularly vulnerable groups, and controlling basic commodity prices; strengthening SMEs and domestic industry as a bastion of the domestic economy.
“In a difficult global situation, protection of citizens must be the top priority,” said the representative for East Java’s Seventh Electoral District.
Regarding diplomacy, Ibas asserted that Indonesia must firmly uphold the principle of independent and active foreign policy. According to him, this principle does not mean neutrality without position, but rather actively promoting peace based on international justice.
The third pillar of Active and Consistent Diplomacy is conducted by promoting conflict resolution through dialogue, negotiation and ceasefires. Additionally, Ibas also encouraged the government to strengthen Indonesia’s role in multilateral forums as part of the solution.
Strengthening National Values and Message of Unity
Ibas also reminded that the Indonesian constitution through the Preamble of the 1945 Constitution mandates this nation to participate in implementing world order. Pancasila values such as just and civilised humanity and unity must become the moral compass of diplomacy.
“Indonesia must not become trapped in global polarisation. We are a great nation that consistently rejects war and violence. We must be a nation firm in values, strong in economy and wise in diplomacy,” said Ibas.
Ibas called on all elements of the nation, from government, parliament, business actors to society, to strengthen national unity and the spirit of mutual cooperation. He believes domestic stability is the key to facing external shocks.
“Amidst global geopolitical turmoil, Indonesia must stand firm as an anchor of stability and moral voice for world peace,” he concluded.