Indonesia urged to anticipate US-Iran conflict impacts

The Indonesian government has been urged to strengthen economic resilience amid the escalating conflict between the United States and Iran. Experts stress the need for export market diversification and adaptive diplomacy.

Global Insight Forum Executive Director Teuku Rezasyah said during a July 19 2026 webinar that prolonged conflict could disrupt the Strait of Hormuz and raise global logistics costs.

He recommended export market diversification and supply chain strengthening to safeguard national economic stability. Indonesia's free and active foreign policy supports its role as a middle power.

University of Indonesia Middle East regional studies head Mulawarman Hannase added that regional dynamics are now shaped by energy, trade, and geo-economics. GIF Senior Fellow Chandra Purnama highlighted multilateral diplomacy.

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Illustration of Indonesian officials with export policy dashboard for palm oil and mining trade.
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Single-window export policy to strengthen Indonesia bargaining position

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The Indonesian government is pushing a single-window export policy to boost competitiveness in global commodity trade including palm oil and mining.

Governments in Asia, the top oil-importing region, are seeking alternatives to shield economies from the energy crisis triggered by the Iran war. The Asian Development Bank cut its growth forecast for developing Asia to 4.7% this year. Oil imports to the region plunged 30% in April.

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Foreign ministers from China and ASEAN issued a joint statement on Friday in Manila calling for deeper energy cooperation. The move comes as Southeast Asia faces disruptions from Middle East tensions, including the closure of the Strait of Hormuz.

Finance Minister Koo Yun-cheol said Friday that the recent US-Iran memorandum of understanding aimed at ending their conflict presents both opportunities and challenges for South Korea.

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