Video: War Pushes Oil Prices Up, Rupiah and the State Budget Could Be Burdened

Jakarta — The Iran–US war, which is heating up, was described by CNBC Indonesia economist Maesaroh as a blow that is pressuring Indonesia’s economy and financial markets after Fitch Ratings downgraded Indonesia’s debt outlook to Negative.

As a country that imports crude oil and subsidised fuels, tensions in the Middle East threaten Indonesia’s energy supply, potentially swelling energy subsidies and jeopardising the state budget.

On the other hand, this situation will also affect the global energy supply chain, including the United States, ultimately constraining economic growth and making it difficult for interest rates to be cut again.

This condition will have negative effects on the stock market, a weaker rupiah, and a heavier burden on the state budget.

The negative effects of the Iran war are seen as potentially more damaging to the global economy than the Russia–Ukraine war, due to greater involvement of states and the economy currently under deeper strain.

What are the impacts of the Iran war on Indonesia? For more, watch the dialogue between Syarifah Rahma and CNBC Indonesia Research Economist Maesaroh on Squawk Box CNBC Indonesia (Friday, 6 March 2026).