Pramono highlights Strait of Hormuz closure and its impact on Jakarta
Jakarta (ANTARA) - Jakarta Governor Pramono Anung has stated that a closure of the Strait of Hormuz resulting from a dispute between Iran and the United States would have economic consequences, including for Jakarta.
The Strait of Hormuz is a strategically important maritime route connecting the Persian Gulf with the Gulf of Oman, located between Oman and Iran, and serves as the primary route for global energy trade. Approximately one-fifth of the world’s total oil exports flow through this strait, including the majority of oil from Gulf states such as Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq, before being sent to international markets.
“If the Strait of Hormuz is closed, it will certainly impact the supply chain and goods will experience price increases,” Pramono said whilst opening the JIS Ramadan Festival 2026 in Jakarta on Sunday.
However, Pramono asked Jakarta residents not to panic, as the provincial government’s primary concern is the availability of essential commodities, particularly as people will soon enter the Eid al-Fitr period.
According to him, essential commodities in Jakarta include red chilli peppers, meat, and rice. The DKI Jakarta Provincial Government is ensuring that stocks of these essential goods remain more than adequate.
Specifically regarding meat commodities, he added, availability and stocks remain in a safe condition.
The provincial government will also continue to monitor price developments in the market and the rate of inflation in Jakarta, so that precautionary measures can be taken promptly if there are price spikes.
“We are monitoring all major markets in Jakarta and no price increases have yet occurred,” he said.
Previously, economist and Executive Director of CORE Indonesia Mohammad Faisal stated that Israeli attacks on Iran, which triggered major explosions on Saturday (28 February), could trigger a surge in global oil prices.
When contacted by ANTARA in Jakarta on Sunday, Faisal explained that current oil prices are around $70 per barrel. However, if the conflict continues, prices could rise to $80 per barrel.
Furthermore, if oil supplies through the Strait of Hormuz are disrupted, he said prices could reach $100 per barrel.
The Strait of Hormuz is the route for approximately 20 per cent of global oil trade. Distribution disruptions in this region have the potential to drive up global crude oil prices.
“If it reaches $100 per barrel, that enters the high zone, a record. We have not experienced such a high increase in recent years; the last time was at the beginning of the Russia-Ukraine war,” he said.