Iran Tensions: Government Urged to Activate Plan to Safeguard State Budget and Rupiah
Jakarta, CNBC Indonesia – Mukhamad Misbakhun, Chairman of Parliamentary Commission XI, has urged the government to prepare concrete policy responses to mitigate potential pressures on the national economy, particularly during the Ramadan and Eid al-Fitr period, stemming from the escalation of military attacks by the United States and Israel against Iran.
According to Misbakhun, the escalation of conflict in the Middle East involving key countries in the global energy supply chain has the potential to trigger rising oil prices and financial market volatility. If not anticipated with measured responses, this could depreciate the rupiah, burden energy subsidies in the state budget, and drive up prices of goods and services domestically.
“The Ramadan period is always synonymous with increased consumer spending. If at the same time global energy prices spike and exchange rates fluctuate, pressure on domestic inflation will intensify. The government must therefore move quickly with a clear fiscal scenario and concrete stabilisation measures,” Misbakhun said in a written statement in Jakarta on Monday (2 March 2026).
He emphasised that the Finance Ministry must immediately prepare realistic emergency fiscal scenarios, including the possibility of adjusting the state spending posture should global oil prices remain at elevated levels.
“Strengthening fiscal reserves and sharpening spending priorities,” he said, “are important steps to maintain fiscal space without compromising social protection programmes.”
Misbakhun also stressed that close coordination between the Finance Ministry and Bank Indonesia is crucial for maintaining exchange rate stability and financial market liquidity. According to him, global turbulence often triggers capital outflows and pressure on the rupiah, so a mix of fiscal and monetary policies must be prepared within a single integrated response framework.
“Rupiah stability and adequate banking sector liquidity must not be disrupted. The business community needs certainty, while the public needs a sense of security. Therefore, fiscal and monetary policies must work in tandem to calm market turbulence,” he stated.
Additionally, Misbakhun urged the government to ensure the availability of energy supplies and maintain smooth domestic logistics distribution. If global oil prices spike significantly, the government must prepare buffer measures to prevent domestic fuel prices from triggering cascading effects on food prices and other essential goods.
“What we must protect is the people’s purchasing power. We cannot allow them to face layered price increases whilst observing Ramadan worship and preparing to celebrate Eid al-Fitr,” Misbakhun said.
In closing, Misbakhun noted that Parliamentary Commission XI will intensively monitor the government’s policy responses to developments in the conflict, including impacts on energy subsidies, inflation, exchange rates, and national financial system stability.