Indonesian Entrepreneurs Urge Government to Prepare Worst-Case Scenario for Iran War

Jakarta — Geopolitical tensions in the Middle East region have persisted for more than two weeks. One aspect that is increasingly concerning business operators is the energy question. Disruptions to global energy supplies could ultimately pressure the stability of fuel prices domestically. This increase in energy costs has the potential to spread across various industrial sectors.

“This means the situation could trigger a rise in fuel prices. When fuel prices increase, production costs for various industries also rise,” said Sarman Simanjorang, Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), to CNBC Indonesia on Tuesday (17 March 2026).

An increase in production costs will almost certainly result in price adjustments for products in the market. This situation could trigger widespread price increases at the consumer level.

“If production costs rise, automatically prices in the market will also adjust accordingly. That is what could then contribute to inflation and pressure the purchasing power of the community,” he said.

For this reason, the government needs to prepare various mitigation measures early on, given that geopolitical conflicts are often difficult to predict when they will end.

“This is something very urgent. The government must prepare steps and worst-case scenarios in case this conflict lasts longer than expected,” said Sarman.

Beyond energy, Indonesia’s dependence on various imported raw materials poses a risk if global logistics routes are disrupted.

“Our industries still depend heavily on imported raw materials, for example the pharmaceutical sector, wheat requirements, and soybean for tofu and tempeh producers,” he said.

The impact of global conflict is felt not only by certain countries, but by almost all world economies due to the interconnectedness of international supply chains.

“A war like this will definitely have an impact on the global economy, and Indonesia also cannot completely avoid its effects,” he said.

Nevertheless, he hopes the government can maintain domestic economic stability through various price and supply control policies.

“What is most important is how the government ensures price stability is maintained so that the purchasing power of the community is not too compressed,” said Sarman.