Impact of the Iran–US–Israel Conflict on Imported Materials for High-End Buildings Growing More Expensive

JAKARTA — The tension in the Iran–US–Israel conflict is seen as potentially pushing up prices of imported materials for high-end building projects in Indonesia, with global energy prices and the rupiah exchange rate as key factors for the property industry. Head of Research of Colliers Indonesia, Ferry Salanto, said that rising global oil and gas prices can affect production and distribution costs of imported building materials. ‘If global oil and gas prices rise significantly, it will affect production and distribution costs of building materials imported, because energy is an important cost component,’ Ferry told Kompas.com on Tuesday (3 March 2026). In addition to energy, he added that a potential weakness in the rupiah could amplify cost pressures on high-end projects that rely on imported components. ‘A depreciation of the rupiah will make imported materials more expensive. Components such as elevators, facade systems, and MEP equipment generally rely on foreign supply. Elevators, facade systems, and MEP—mechanical engineering equipment—are among the items that tend to rise. The components for tall buildings and high-end buildings are highly imported, and it will become more expensive,’ he said. Beyond cost and exchange-rate pressures, project delays could also occur if demand slows due to negative sentiment from the global situation. ‘A third potential delay is if market demand slows because of negative sentiment. Usually developers may hold back launching new projects,’ Ferry said. Given these conditions, he estimates that business players will be more cautious in expanding. ‘So we won’t see many launches of new projects,’ he concluded.