Indonesia's Role in the Board of Peace: What Can the Country Achieve in De-escalating the Middle East Conflict?
Indonesia’s decision to join the Board of Peace, a diplomatic initiative launched by US President Donald Trump, coincides with escalating tensions between Iran, Israel, and the United States, triggering global concerns. Prof Dafri Agussalim, Professor of International Relations at Universitas Gadjah Mada’s Faculty of Social and Political Sciences, warned that Indonesia’s board membership carries significant implications for the nation’s international standing.
International perceptions of Indonesia could shift dramatically when political decisions are made amid open conflict, Agussalim cautioned. He explained that Indonesia’s decision to join the board whilst military attacks occurred created perceptions of taking sides. “The moment we joined, Israel launched an attack, which dealt a heavy blow to our foreign policy,” he stated on Tuesday.
Indonesia’s status as a non-aligned nation has come under scrutiny following the decision. According to Agussalim, credibility as a mediator requires clear distance from conflicting parties. In conflict resolution theory, mediators must be perceived as neutral with strong reputations to earn the trust of both sides. “We have essentially abandoned our foundational position as a non-aligned nation,” he emphasised.
Adding to concerns, Iran’s Ambassador to Indonesia formally rejected Indonesia’s offer to serve as a mediator. Agussalim stressed that strategic policy should be grounded in rigorous academic research and robust data before implementation. He emphasised that evidence-based policy is essential to avoid purely intuitive decision-making. “I have repeatedly stressed the importance of evidence-based policy,” he said.
On the economic front, Prof Agus Sartono from Universitas Gadjah Mada’s Faculty of Economics and Business warned that the Iran-Israel conflict poses serious risks to Indonesia’s energy sector. Rising oil prices will directly impact transportation costs and production expenses. “The first concern we must address is petroleum fuel supply, given its far-reaching implications,” he explained.
Sartono noted that economic impacts may not be immediately apparent because energy import contracts typically cover several months ahead. However, within three to six months, price pressures could begin affecting cost structures across various sectors. Rising production costs threaten businesses and could disrupt export-import activities. “The impact is not yet visible, but we may feel it within three months,” he observed.
Sartono warned that Indonesia’s reliance on imported consumer goods and energy increases vulnerability to global shocks. He advocated for export market diversification and strengthening domestic economic resilience. Without adequate mitigation strategies, external pressures could affect employment absorption and fiscal stability. “We must diversify our export markets to avoid dependence on a single country,” he stated.