Trade Minister Reveals Challenges for Exporters Due to Iran-Israel Conflict
Trade Minister Budi Santoso stated that the conflict between the United States and Israel against Iran has not affected export performance to the Middle East. “There are some impacts, particularly for those exporting to the Middle East. However, demand from the Middle East has not actually declined,” Budi Santoso said at Graha Mandiri, Jakarta, on Friday, 13 March 2026.
Budi Santoso indicated that his statement represented an explanation to business owners from the Indonesian Export Companies Association (GPEI) during a meeting with the Trade Minister.
Whilst not experiencing a decline in demand, Budi Santoso stated that exporters have complained about inflated logistics costs resulting from geopolitical escalation. “That is the problem, but (business owners) continue to export,” he said.
Ateng Hartono, Deputy Head of Statistics Distribution and Services at the Central Bureau of Statistics (BPS), stated that the impact of the Iran conflict on Indonesia’s trade with Middle Eastern countries still requires further study. However, as an indication, three Indonesian trading partners are located along the Strait of Hormuz: Iran, Oman, and the United Arab Emirates.
Ateng stated that the value of non-oil imports from Iran to Indonesia during 2025 reached US$8.4 million. “This comprised fruit valued at US$5.9 million; iron and steel valued at US$0.8 million; and machinery, mechanical apparatus and parts valued at US$0.7 million,” he said at a press conference at BPS headquarters, Jakarta, on Monday, 2 March 2026.
Meanwhile, non-oil exports from Indonesia to Iran in 2025 totalled US$249.1 million. This export comprised fruit valued at US$86.4 million; vehicles and parts valued at US$34.1 million; and animal and vegetable fats and oils valued at US$22 million.
Between Indonesia and Oman, the value of non-oil imports in 2025 reached US$718.8 million. These imports comprised iron and steel valued at US$590.5 million; organic fuel valued at US$56.7 million; and salt, sulphur, stone, and cement valued at US$44.2 million. The value of non-oil exports to Oman reached US$428.8 million. These exports comprised animal and vegetable fats and oils valued at US$227.7 million; vehicles and parts valued at US$64.2 million; and mineral fuel valued at US$48.1 million.
Between Indonesia and the United Arab Emirates, the value of imports reached US$1.4 billion. Exports comprised precious metals and jewellery valued at US$511.1 million; salt, sulphur, stone, and cement valued at US$43.2 million; and aluminium and aluminium products valued at US$181.6 million.
Non-oil exports to the United Arab Emirates in 2025 totalled US$4.0 billion. Key commodities exported include precious metals and jewellery valued at US$183.6 million; animal and vegetable fats and oils valued at US$510.3 million; and vehicles and parts valued at US$363.5 million.
The Strait of Hormuz constitutes a vital global trade route. Approximately 20 per cent of global oil consumption and 20-25 per cent of international liquefied natural gas trade pass through this strait. Disruption at the Strait of Hormuz occurred following United States and Israeli attacks on Iran on Saturday, 28 February 2026.
The Islamic Revolutionary Guard Corps (IRGC) claimed on Sunday, 1 March 2026, that it had attacked three oil tankers belonging to the United States and the United Kingdom in the Gulf and Strait of Hormuz using missiles, causing them to catch fire. In a statement from the IRGC’s official news outlet, Sepah News, the Iranian military corps also said it targeted United States military installations in Kuwait and Bahrain, as reported and cited by Antara.