Pramono Warns of US-Israel Attacks on Iran Impacting Jakarta's Economy
Jakarta Governor Pramono Anung has expressed concern about the risks posed by the US-Israel conflict with Iran, warning that it could have significant impacts on the global economy and Indonesia, including Jakarta.
This follows Iran’s closure of the Strait of Hormuz following US-Israeli attacks on Iran last weekend.
“If the Strait of Hormuz is closed, it will certainly impact supply chains and goods will experience price increases,” Pramono said whilst opening the JIS Ramadan Festival 2026 in Jakarta on Sunday, 1 March, as reported by Antara.
The Strait of Hormuz is a strategically crucial 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 total global crude oil exports flow through this strait, including most oil from Persian Gulf countries such as Saudi Arabia, the United Arab Emirates, Kuwait and Iraq, before being transported to international markets.
Nevertheless, Pramono urged Jakarta residents not to panic. The Jakarta Provincial Government has confirmed that stocks of essential goods remain more than adequate.
Specifically regarding meat commodities, he said supply and stock levels remain secure. He stressed that the local government’s primary concern is ensuring the availability of essential goods, particularly as society approaches Eid al-Fitr in the coming period.
The Jakarta Provincial Government will continue monitoring price developments across major markets and inflation trends in the capital, so that precautionary measures can be swiftly implemented should prices spike.
“We are monitoring all major markets in Jakarta and price increases have not yet occurred,” he said.
Earlier, economist and Executive Director of CORE Indonesia Mohammad Faisal stated that Israel’s attacks on Iran, which triggered major explosions on Saturday, 28 February, could trigger a spike in global crude oil prices.
Faisal explained that crude oil prices are currently in the region of 70 US dollars per barrel. However, should the conflict continue, prices could rise to 80 US dollars per barrel.
Should oil supplies through the Strait of Hormuz be disrupted, he said prices could reach 100 US dollars per barrel.
The Strait of Hormuz serves approximately 20 per cent of global oil trade. Distribution disruptions in this region could potentially drive up global crude oil prices.
“Once it reaches 100 US dollars per barrel, that enters the high zone, a record level. In recent years we have not experienced such a significant increase, the last time being when the Russia-Ukraine war began,” he said.