Indonesia’s Calm Resolve Amid Middle Eastern Escalation

The world woke up once again to a sobering headline: the United States has conducted successful strikes on three Iranian nuclear sites, triggering an immediate spike in oil prices and roiling financial markets already on edge. As global capitals react with alarm and speculation, we in Indonesia must respond with the steadiness that has long defined our place in the world.

A Crisis in Which We Hold No Stake — Yet Face Real Risks

Indonesia does not fuel geopolitical conflicts; it feels their ripple effects. As a major Muslim-majority democracy with a staunchly independent foreign policy, we have consistently advocated for dialogue over confrontation, and for peace over provocation. Under President Prabowo’s leadership, this stance remains unambiguous.

But neutrality does not shield us from the economic aftershocks of war. Over half of our oil is imported. A sharp and sustained surge in global crude prices strains our fiscal balance, threatens inflationary pressures, and risks undermining the purchasing power that sustains our domestic-driven economy.

Protecting Stability Is Our Highest Imperative

I have seen firsthand, through my work with micro and small businesses, tourism investors, and rural communities, how global turbulence quickly reaches ordinary households. Fuel prices shape transport costs; transport costs shape food prices; food prices shape household resilience.

It is precisely during such global crises that governments must be quick yet measured. In Indonesia, our immediate priorities are clear:

First, accelerate the diversification of our energy mix — our biofuel program is one of the region’s most ambitious, but it must now deliver greater resilience.

Second, maintain targeted fuel subsidies that protect the poorest segments without draining fiscal space for essential development spending.

Third, harness windfall revenues from commodities like coal and palm oil to offset rising import costs.

Fourth, uphold policy clarity and macroeconomic credibility to anchor investor confidence and keep our currency stable.

Diplomacy and Business Leadership Must Work in Tandem

Indonesia should continue to use its credibility as a moderate voice in the Muslim world to encourage restraint and de-escalation. We have a diplomatic legacy of bridge-building; now is not the time to be passive observers.

Likewise, the private sector must avoid knee-jerk reactions. Businesses should review their supply chains, hedge prudently, and reassure partners that Indonesia’s fundamentals remain sound: a large domestic market, prudent macroeconomic management, and a mature democratic society able to weather shocks.

Unity Has Always Been Our Strongest Asset

Markets dislike uncertainty; people fear conflict. Yet Indonesia has repeatedly demonstrated that unity, pragmatism, and adaptability are stronger than any imported crisis.

This latest geopolitical shock will test our resilience. But I am confident that with clear policies, measured diplomacy, and responsible leadership — both in government and the private sector — Indonesia will emerge not weakened but wiser, more connected, and more respected in the region and beyond.