JK Warns US-Iran Conflict Could Disrupt National Energy Supply

Jakarta, VIVA – Jusuf Kalla, who has served as the 10th and 12th Vice President of the Republic of Indonesia, urged the government to implement appropriate policy adjustments to keep the national economy stable amid increasingly complex global dynamics. The conflict in the Middle East, particularly between the United States and Iran, was cited as a risk. He noted that the conflict could have a significant impact on Indonesia’s economy, especially regarding rising energy prices and the government’s subsidy burden. He said that escalating international conflict would trigger higher prices for fuel and LPG, which would ultimately increase the government’s subsidy burden. ‘The impact on Indonesia is immediately felt in the economy. Fuel prices rise, LPG prices rise, and that means the government’s subsidies will become larger,’ JK said in a statement on Saturday, 7 March 2026. JK said that a prolonged conflict could disrupt national energy supplies. In his view, Indonesia’s stock of BBM is relatively limited, so government anticipation is required. ‘If the war lasts longer, our BBM stocks will be limited. That could pose difficulties for economic and business activities,’ he said. In addition to the economic impact, JK also believes Indonesia needs to have a clear political stance on the international conflict. As the country with the world’s largest Muslim population, Indonesia is seen as needing to show a firm diplomatic position. He noted that the government can leverage Indonesia’s role in international forums to push for a resolution to the conflict and for peace. JK also stressed the importance of a thorough evaluation of national economic policy, especially regarding management of the state budget amid global uncertainty. He said the government needs to determine priorities for state spending so that expenditures do not become overly burdensome. ‘There must be a comprehensive evaluation of economic policy, particularly in budget use. The state must set priorities so that expenditures are not too large,’ he said. He warned that if government spending is not controlled, the risk of pressure on the national economy could rise, potentially affecting international confidence in Indonesia’s economy. On that occasion, JK also touched on several government programs requiring large budgets. He said such policies should be aligned with the condition of state revenue so that important sectors such as education, infrastructure, and strengthening the foundation of the economy remain a priority.