Jakarta Provincial Government Urged to Prepare for Impacts of US-Iran Conflict

Jakarta — Jakarta Governor Pramono Anung Wibowo has instructed provincial government bodies to prepare for potential economic crisis amid the ongoing conflict between Iran, Israel and America.

“I have instructed the Regional State-Owned Enterprises (BUMD) to always consider the possibility of crisis. So if there are shortages, for example of certain products, we must prepare for that,” Pramono said in the Sarinah area of central Jakarta on Monday.

Pramono expressed hope that the conflict would not be protracted. However, as Jakarta’s leader, he acknowledged that the situation would have impacts on the capital, particularly in the supply of goods and services. Should this occur, price increases for goods may be felt in Jakarta.

“First, the supply chain passes through the Strait of Hormuz, where more than 30 per cent of the world’s oil always passes through. If the strait were to be closed, the impact would extend further, transportation costs for goods would become more expensive, and prices would definitely be affected,” Pramono explained.

As a precautionary measure, Pramono has mobilised all regional state-owned enterprises to jointly address this possibility. One such initiative saw the Jakarta provincial government recently import Australian cattle as a strategy to stabilise beef prices in the capital.

“This is our way of ensuring beef prices do not increase, and thanks be to God, prices have remained stable to date,” Pramono stated.

Previously, Pramono had also announced that the Jakarta provincial government would continue to monitor global developments and maintain stability in Jakarta, particularly ahead of Ramadan and Eid al-Fitr celebrations this year. He has called upon all stakeholders to maintain a conducive atmosphere in the capital amid global uncertainty.