Trade Minister Prepares Strategy to Address Iran Conflict Impacts

Jakarta — Indonesia’s Trade Minister Budi Santoso has affirmed that the government is preparing various preventative measures to mitigate the global economic consequences stemming from escalating attacks by the United States and Israel against Iran.

Meeting at the Ministry of Trade office in Jakarta on Monday, Budi stated that experience from previous conflicts between Iran and Israel had not produced significant impacts on Indonesia’s economy.

However, he noted that should escalation occur leading to the closure of the Strait of Hormuz, global crude oil prices could surge substantially. Rising energy costs would directly impact production expenses, transportation, and consumer goods prices.

“Of course, oil and raw materials prices will increase. But our economic growth is substantially underpinned by domestic consumption. So we must strengthen that, continue to maintain it,” Budi said.

Consequently, the government’s second strategy involves promoting exports to markets relatively unaffected by the conflict. Export destination diversification is considered crucial to maintain trading momentum amid global uncertainty.

The government will maximise various stimulus measures already prepared, particularly in advance of the Eid holiday season, and encourage collaboration with the private sector to sustain domestic economic circulation.

“We anticipate this in advance and maintain this positive momentum. Especially with Eid approaching, I believe the government has provided considerable stimulus. We will continue undertaking joint initiatives with the private sector to enhance purchasing power and boost domestic market demand,” he explained.