Iran-Israel Conflict Affects Oil Prices, Erick Thohir Asks SOEs To Stress Test

SOE Minister Erick Thohir. (Photo: Mery Handayani/VOI)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir asked state-owned companies to do a stress test or stress test to find out the condition of SOEs amid the escalation of conflicts in Iran-Israel.

Erick said the impact of the escalation of the Iranian conflict with Israel that SOEs must monitor is the increase in world oil prices.

"I ask for a stress test for all SOEs. I ask for a capex and opex review," he said when met at the BUMN Ministry Office, Jakarta, Wednesday, April 17.

Erick said, he also requested that later each state-owned company must submit the reports a week or two in the future.

"To all SOEs, all the President Directors, Dirkeu, Risk Management to target and I ask for another 1-2 weeks they try to make a report," he concluded.

In the midst of the escalation of the Iran-Israeli conflict, Erick said that BUMN-BUMN directly felt its stalls were SOEs in the mining, electricity (PLN) sector, and state-owned airlines such as Garuda Indonesia.

If asked which SOEs are, yes, some SOEs will be affected. Like of course mining SOEs, electricity SOEs such as PLN, and others. Garuda can also be affected, it can be done too," said Erick.

Previously reported, Economist Josua Pardede said. If the conflict between Iran and Israel increases, it will trigger an increase in world oil prices. This includes the price of gold.

The war will not only disrupt production, but also distribution channels. This situation will trigger a spike in oil prices," said Josua.

The head of Bank Permata economist said that currently the price of Brent crude has reached around 90 US dollars per barrel.

For your information, Iran is one of the largest oil producers in the world with a production of around 3.9 million barrels per day, with oil exports reaching 1.29 million barrels per day in 2023.

Indonesia is one of the largest crude oil importers in ASEAN so that it will be affected if there is a significant increase in world oil prices.