Indonesian Domestic Trade Unruffled by Iran War, Says Minister

TEMPO.CO, Jakarta - US and Israeli war against Iran does not disrupt domestic trade, accroding to Indonesian Trade Minister Budi Santoso. "Talking about the impact of the war, it actually does not disrupt us domestically," he said at the Ministry of Trade complex, Jakarta, Thursday, March 5, 2026.

Food prices, he said, remain stable, especially in flood-affected areas of Sumatra. There has also been no disruption to food supplies in the country so far, the minister claimed.

Public demand is also on the rise, signifying positive purchasing power amidst volatile global dynamics. Household consumption remains the largest contributor to the gross domestic product (GDP).

"We must maintain the momentum to avoid great disruptions later on due to this war," he said.

Despite relatively unruffled domestic trade, exports may face some challenges amid the geopolitical unrest, as political dynamics disrupt the global supply chain and, subsequently the exports and imports of goods.

To mitigate this, business players are urged to diversify markets to countries facing supply shortages due to the war—Africa or the Southeast Asian region, for example. "But we must ascertain whether the destination countries are truly affected greatly [by the war]," he said.

Market diversification is prioritized for small businesses (MSMEs), as they are still new to exports and will find an easier time to look for other markets in the short term.

The minister said he plans to meet with representatives of Indonesian exporters, one of which is the Indonesian Export Companies Association. He explained that the meeting aims to discuss the issues experienced by exporters, including the potential for market diversification, especially for raw material exports. 

The ministry has yet to make an estimate of how badly exports are hit by the Iran war, but Minister budi said the government will make projections with the Trade Policy Agency of the Ministry of Trade. "Hopefully the war ends quickly," he said.

Read: Indonesia Says 1,000-Ton Rice Imports from U.S. Limited to Specialty Varieties

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