Video: Iran War Threatens, Indonesia on Alert and Anticipates Soaring Inflation

Video: Iran War Threatens, Indonesia on Alert and Anticipates Soaring Inflation

Jakarta, CNBC Indonesia - CNBC Indonesia Research Economist, Maesaroh, states that the surge in global crude oil prices due to the closure of the Strait of Hormuz and the war between Iran and the United States and Israel will have a significant impact on the global economy, including Indonesia.

Disruptions to oil and gas supply chains, fertiliser, and food commodities are increasingly concerning as they will drive up global oil and food prices, causing inflation to skyrocket. For Indonesia, this situation has the potential to continuously increase the costs of importing oil and food, burdening fuel subsidies and the state budget.

In addition, the weakening of the rupiah exchange rate will also cause the state budget deficit to continue rising, weakening domestic activities and thus threatening Indonesia’s economic growth.

From an investment prospects perspective, the turmoil of war will also impact global financial markets, including Indonesia, amid market participants’ concerns over global economic and geopolitical developments.

Currently, investors are beginning to divest from risky assets, including emerging markets, and shifting to safe havens or opting to hold cash.

How does the analysis of the war’s impact on the economy, financial markets, and central bank policies look? For more details, watch the dialogue between Syarifah Rahma and CNBC Indonesia Research Economist, Maesaroh, in Squawk Box CNBC Indonesia (Friday, 13/03/2026).