JAKARTA - Member of Commission XI of the House of Representatives Charles Meikyansah believes the government has prepared anticipatory steps in responding to the escalation of the war in the Middle East, which may have an impact on Indonesia due to the heated conflict between Iran and Israel.
"We are very vulnerable to global impacts, especially rising oil prices and pressure on the rupiah. This can increase subsidy burdens, trigger inflation, and reduce people's purchasing power," said Charles Meikyansah, Thursday, June 19.
Charles fears that Indonesia as an oil importer will face the risk of increasing logistics costs, pressure on trade balances, and disruption to fiscal stability if tensions in the Middle East interfere with oil distribution lines such as the Strait of Hormuz. Global uncertainty, he said, could also reduce investment interest and slow down the expansion of business actors.
"However, I believe, the government under the leadership of President Prabowo Subianto has prepared measurable anticipatory steps in facing this challenge," he said.
Charles believes that Prabowo's active communication with world leaders is able to bridge tensions between Iran and Israel. As well as mitigation carried out by relevant ministries and institutions.
"President Prabowo has established communication with a number of heads of state, and it is an important initial capital to build more strategic economic and foreign political coordination," said Charles.
The commission member in charge of state financial affairs also encouraged the Government to strengthen fiscal-moneter coordination in the face of global geopolitical dynamics. Charles also asked the Government to maintain exchange rate stability and energy prices.
"Of course, through the relevant ministries, we hope that the government can also prepare a subsidy scenario that is right on target, maintain a deficit within safe limits, and provide certainty on the direction of economic policy for business actors," he concluded.
The Israeli and Iranian conflicts have now become an open war. On June 13, 2025, Israel launched massive airstrikes into more than 12 strategic locations in Iran through Operation Rising Lion operations. Iran retaliated with an operation called Operation True Promise III.
The Iranian-Israeli attack continued until June 17, there was no sign that the conflict between the two countries began to subside. As of Monday, June 17, Israel's attack on Iran was reported to have left about 224 people dead and between 1,481 people injured.
90 percent of the victims were civilians. Iranian attacks on Israel killed about 18 people and left 140 to 200 injured. The majority of the injured were also civilians.
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