Pramono Worried about US-Israel War vs Iran Disrupting Supply Chain, Asking BUMD Jakarta to Be on Crisis Alert

DKI Jakarta Governor Pramono Anung/PHOTO: Diah Ayu-VOI

JAKARTA - DKI Jakarta Governor Pramono Anung hopes that the conflict between the United States-Israel and Iran will not last long. He is worried that the escalation of the war has the potential to trigger global supply chain disruptions that will affect the prices of goods and services, including in Jakarta.

"So hopefully, as the Governor of Jakarta, I really hope that this war will not last long. Because if it lasts long, it will definitely have an impact on goods and services," said Pramono on MH Thamrin Street, Central Jakarta, Monday, March 2.

He highlighted the strategic position of the Strait of Hormuz in the world's energy and logistics distribution channels. According to him, if the route is disrupted or closed, the supply chain will be longer and the distribution costs will increase.

"Why goods and services? Because first of all, this supply chain is through the Strait of Hormuz, where almost 30 percent more of the world's oil always passes through this strait, including other goods," said Pramono.

"So if this is closed, the impact will be that the supply chain will become longer, the cost of travel for the goods will become more expensive, and the impact on the price will definitely be affected," he continued.

In addition to being aware of the global impact, Pramono asked the DKI BUMD to think in a crisis scenario. He wants anticipation to be made from the beginning if there is a shortage of certain commodities.

"Then for the second one, for Jakarta itself because we have infrastructure and then the existing BUMD, I convey to the BUMD ranks that we always think about crises," he said.

According to him, readiness is important so that local governments can move quickly when supplies are disrupted. For example, he mentioned the DKI Provincial Government's steps when facing Ramadan and Eid al-Fitr by bringing in a certain number of cows to maintain the stability of meat prices.

"Like when we face this Eid, yesterday we brought in cows in the quota for this year 7,500, 2,000 we brought in during Ramadan and Eid al-Fitr," said Pramono.

"This is our way to make sure that the price of meat does not increase, and thank God it has not increased until today," he concluded.