Pramono Urges Local State-Owned Enterprises to Prepare for Crisis Fallout from Iran-Israel Conflict
JAKARTA — Jakarta Governor Pramono Anung Wibowo has instructed all local state-owned enterprises (BUMDs) to prepare for potential economic disruptions caused by escalating conflict in the Middle East between Iran, Israel, and the United States.
Pramono emphasised that BUMDs must ensure secure supply chains, maintain smooth operations, and keep costs efficient. He also requested that each regional company develop contingency plans should supply disruptions or cost increases occur.
“I am instructing all local state-owned enterprises (BUMDs) to always think about crisis management. So if there are shortages—for instance, of certain products—we must prepare for that,” said Pramono at Sarinah in Central Jakarta on Monday, 2 March 2026.
According to Pramono, more than 30 per cent of global oil distribution passes through the Strait of Hormuz, along with shipments of various other commodities.
If this route is disrupted or closed, logistics costs are expected to rise significantly, impacting commodity prices.
“The supply chain passes through the Strait of Hormuz, where nearly 30 per cent of the world’s oil always transits, along with other goods. Should this strait be closed, the consequences will be extensive—shipping costs for these goods will increase significantly, and prices will certainly be affected,” Pramono explained.
To prevent inflation, Jakarta’s provincial government has begun implementing market interventions.
One example cited by Pramono is the importation of 7,500 cattle from Australia to stabilise meat prices ahead of Ramadan and Eid al-Fitr.
Pramono claims this approach has proven effective in reducing price volatility in the capital’s traditional markets.
“Previously, we imported cattle within this year’s quota of 7,500 head; we brought in 2,000 head in time for Ramadan and Eid al-Fitr. This is our strategy to prevent meat prices from rising, and by God’s grace, prices have remained stable to this day,” said Pramono.