Indonesian Political, Business & Finance News

JK Warns of Potential Rise in BBM and LPG Prices Following Middle East Conflict

| | Source: KOMPAS Translated from Indonesian | Economy
JK Warns of Potential Rise in BBM and LPG Prices Following Middle East Conflict
Image: KOMPAS

JAKARTA – Jusuf Kalla (JK), the 10th and 12th Vice President of the Republic of Indonesia, expressed concern about the potential rise in fuel prices (BBM) as a result of the Middle East conflict following the United States’ strike on Iran. He conveyed this to reporters after breaking fast and performing tarawih prayers with the management and members of the Korps Alumni Himpunan Mahasiswa Islam (KAHMI) at his residence in South Jakarta on Friday, 6 March 2026. JK assessed that the escalation of the Middle East conflict will influence increases in BBM and LPG prices, which would further burden state subsidies. If the conflict lasts a long time, he said, it could disrupt the national energy supply. According to him, Indonesia’s stock of BBM is relatively limited and thus needs to be anticipated by the government. ‘If the war lasts long, our BBM stock is limited. That could cause difficulties for economic activity and business,’ JK said. As the country with the largest Muslim population, Indonesia is seen to need to demonstrate a firm diplomatic stance. He noted that the government could leverage Indonesia’s role in international forums to push for conflict resolution and peace. JK also emphasised the importance of a comprehensive evaluation of national economic policy, particularly regarding the management of the state budget amid global uncertainty. ‘There must be a total evaluation of economic policy, especially in budget use. The state must set priorities so that spending is not too large,’ JK said.

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