War and global uncertainty prompt Indonesian entrepreneurs to exercise caution

Global economic uncertainty stemming from geopolitical conflicts and wars in the Middle East has begun to influence how Indonesian business operators make decisions. In this context, many entrepreneurs have chosen to halt expansion plans and focus on strengthening their internal operations. Managing Partner of Australasia and Southern Africa Regional Country Partner at ActionCO Coach, Harry Welby, stated that global economic conditions had initially shown positive trends at the start of the year. Economic stability improved, energy costs remained relatively low, and interest rates decreased. However, this changed following geopolitical tensions and Middle East conflicts that introduced new uncertainty in the business world. “When faced with uncertainty, people tend to pause and wait,” Welby said during the Celebrating 33 Years of ActionCO Coach event in Jakarta on Tuesday, 26 May 2025. According to him, fuel price pressures, economic tensions, and currency depreciation have prompted many entrepreneurs to adopt a more cautious stance.Yet, business needs have actually increased amid such conditions. Welby added that entrepreneurs must continue to act and seek new solutions despite economic instability, as the business world always faces challenges, from global financial crises to the Covid-19 pandemic. “In difficult times, opportunities always arise. Businesses must continue operating,” he said. Senior Partner of ActionCO Coach Indonesia, Prijono Nugroho, stated that uncertain economic conditions have divided entrepreneurs into two groups. Some choose to remain inactive and wait for conditions to improve, while others are strengthening their business foundations to better adapt to market changes. “Some feel it’s time to pause, while others see this as an opportunity to improve internal operations to adapt to current circumstances,” Prijono said. According to him, demand for business coaching has continued to grow in recent years, with most new clients coming from referrals by other entrepreneurs who have experienced the benefits of business coaching. Meanwhile, Senior Business Coach at ActionCO Coach Indonesia, Yusman Susanto, highlighted that internal operational issues remain the biggest challenge for many businesses in Indonesia. He noted that many companies appear strong externally but still have operational challenges that remain unaddressed.