Indonesia's Agro Industry Confirmed Minimally Affected by Middle East Conflict, Industry Ministry Highlights Rising Global Logistics Costs

The conflict currently occurring in the Middle East region has been confirmed as having no significant impact on the performance of Indonesia’s national agro industry, as the majority of raw materials for the sector originate from within the country or from regions outside the conflict zone.

Putu Juli Ardika, Acting Director General of Agro Industry at the Ministry of Industry, stated in Jakarta that Indonesia’s agro industry possesses sufficient resilience against global geopolitical turbulence due to its reliance on domestic resources.

“The agro industry processes our natural resources. So for the main raw materials, there is no issue directly related to the Middle East conflict,” Putu said on Tuesday, 10 March 2026.

He explained that the majority of agro-industrial raw materials such as cooking oil, processed food products, and various agriculture-based commodities are supplied domestically. Consequently, the Middle East conflict does not directly disrupt the availability of raw materials for the industry.

Additionally, import requirements for agro-industrial raw materials generally do not originate from Middle Eastern countries. For example, industrial sugar such as refined sugar is predominantly imported from countries such as Australia, Thailand, and Latin America. Other imported raw materials had already entered the country before the conflict occurred.

Nevertheless, Putu acknowledged that global geopolitical conflict still has the potential to create indirect impacts, particularly concerning distribution costs. “The impact is more on transportation or logistics costs,” he said.

The ministry continues to monitor global developments to anticipate potential supply chain disruptions and changes in logistics costs resulting from geopolitical dynamics. “We have also prepared alternatives so that the impact on the agro industry is not significant,” Putu said.