MPR Leadership Urges Strengthening of Energy and Economy Amid Middle East Conflict
Jakarta — Vice-Chairman of the People’s Consultative Assembly (MPR) Edhie Baskoro Yudhoyono, commonly known as Ibas, has called for strengthened national energy and economic resilience in response to escalating armed conflict in the Middle East involving Iran, Israel and the United States.
According to a written statement received in Jakarta on Tuesday, Ibas stated that the situation could potentially expand global geopolitical instability and place serious pressure on the world economy, including Indonesia.
“The world today faces a situation of serious uncertainty. When armed conflict occurs at the centre of global energy supply, its effects ripple through all countries, including Indonesia. We must be vigilant, responsive and strategic,” he said.
According to him, conflict in this strategically significant global energy-producing region impacts not only directly involved countries but also carries broad consequences for energy stability, international trade routes, global inflation and regional security.
Specifically, Ibas highlighted the Strait of Hormuz, which represents a vital global energy trading route. Given Iran’s direct border with this narrow waterway, conflict escalation risks triggering distribution disruptions or even complete closure of the route.
The Strait of Hormuz, he added, is vital to between 20 to 30 per cent of global oil consumption daily, and serves as the primary route for liquefied natural gas (LNG) from Qatar. Should stability in the strait be disrupted, the world would face supply shocks.
“For Indonesia, this is not merely figures on the stock market, but a genuine threat to industrial operating costs and fuel availability at the retail level. We must realise that disruptions in the strait could drive crude oil prices far above our macro budget assumptions,” said Ibas.
Beyond crude oil, he noted that disruptions on that route would also systematically impact global supply chains. This is because rising shipping insurance costs and rerouted tanker voyages would significantly increase international logistics costs.
Such conditions would trigger cascading effects on import prices and industrial raw materials domestically, which could ultimately depress growth in the national manufacturing sector.
As a country still dependent on imported energy, Indonesia remains highly vulnerable to surges in global oil prices.
Ibas predicted that rising global energy prices could trigger chains of negative effects, including pressure on the state budget, inflation of essential commodities, declining purchasing power and obstacles to exports and imports.
“We must anticipate these cascading global economic impacts through measured steps and well-targeted policies to maintain stability in national economic growth,” he said.
In addressing these dynamics, Ibas emphasised that Indonesia must not simply be reactive but rather take strategic steps, including strengthening energy resilience, economic stability and public protection, as well as conducting active and consistent diplomacy.
He further reminded that the Constitution mandates the Indonesian nation to participate in implementing global order. Pancasila values, such as just and civilised humanity and unity, must serve as the moral compass of diplomacy.
“Indonesia must not be trapped in global polarisation. We are a great nation that consistently rejects war and violence. We must be a nation firm in values, strong in economy and wise in diplomacy,” he said.
He called upon all elements of the nation, from government and parliament to business actors and the public, to strengthen national unity and the spirit of mutual cooperation. He believes domestic stability is the key to withstanding external shocks.
“Amid global geopolitical turmoil, Indonesia must stand firm as an anchor of stability and moral voice for world peace,” said Ibas.