Industrial Estate Chief Reveals Impact of Middle East Conflict on Investment Interest

Jakarta — Geopolitical tensions in the Middle East involving Iran, the United States, and Israel have caused disruptions to global energy supply chains, resulting in crude oil prices reaching USD 113 per barrel on Monday trading (6 March 2026).

Ahmad Fauzie Nur, Chief Executive of PT Kawasan Industri Wijayakusuma (KIW), noted that the Middle East turmoil will indirectly impact global investment flows, including those directed to Indonesia.

The surge in global oil prices will place pressure on the global economy and trigger concerns about a slowdown in global economic growth. As a result, investors are expected to become more cautious in conducting business and making investments. For industrial estate operators, the government must mitigate these conditions to maintain investor confidence and attract foreign direct investment.

Currently, KIW continues to attract investors from both domestic and international sources, including from Taiwan, China, and South Korea. To capitalise on this opportunity, KIW is strengthening supporting infrastructure, including expanding land holdings and increasing ready-built factory/warehouse facilities.

The executive discussed the impact of the Middle East conflict on investment in Indonesian industrial estates during Focus On Infra, a CNBC Indonesia programme broadcast on Wednesday, 11 March 2026.