JK Warns of Economic Impact from Iran-Israel-US Conflict
Former Vice President Jusuf Kalla has stated that the conflict between Iran and Israel-America impacts the global economy, including Indonesia, with significant effects on oil prices.
“Fuel and oil prices will increase and have already risen, reaching above 100 previously and now declining slightly,” he said at his residence in South Jakarta on Thursday, 12 March 2026.
Rising oil prices will affect fuel subsidies and logistics costs in Indonesia. According to Kalla, this ultimately impacts the overall Indonesian economy. “Eventually it affects the Rupiah against the Dollar and stock markets,” said the senior Golkar Party politician.
Energy and Mineral Resources Minister Bahlil Lahadalia previously requested the public not to panic regarding fuel availability. Bahlil stated that domestic fuel supplies are sufficient for the next 23 days.
“I’ve already mentioned several times in the media that our stock is in safe condition. 23 days, there’s no need for panic buying,” said Bahlil following a limited meeting at the Presidential Palace in Jakarta on Thursday, 12 March 2026.
Panic-buying of fuel has occurred in several regions including Jember, Medan, and Aceh. The public reportedly rushed to purchase fuel after rumours circulated regarding potential energy supply disruptions due to the global conflict in the Middle East.
According to Bahlil, fuel availability for more than 20 days reflects stock in storage tanks, whilst fuel production continues and is distributed.
“But production continues, we keep producing and supplies keep coming in. Please, media colleagues, also convey accurate information,” said the Golkar Party Chair.
Two days earlier, Bahlil conveyed a similar message. He stressed that the public must remain calm amid fluctuating global oil prices due to the conflict in the Middle East. “I advise and request that there be no panic buying because our fuel stock is indeed sufficient,” Bahlil said on Tuesday, 10 March 2026.
The Golkar Party Chair claimed that the domestic fuel industry continues operating whilst imported oil faces no supply problems.
He assessed that the conflict between the United States-Israel and Iran has limited impact on domestic fuel stocks, as Indonesia only imports crude oil from the region.
Bahlil noted that Indonesia has alternative fuel sources. “We import refined oil from Southeast Asian countries and from domestic production,” he said.