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
Click here to get the latest news updates from Tempo on Google News
Trade Minister Urges MSMEs to Diversify Amid Strait of Hormuz Crisis
1 jam lalu
Trade Minister Budi Santoso warns that the Strait of Hormuz closure will alter global trade.
Payment Systems in the Trade Agreement
1 hari lalu
Indonesia's trade agreement with the United States includes a clause on payment systems, one that favors foreign players.
Iran Says It Will 'Set Ablaze' Any Ship Trying to Pass Through Strait of Hormuz
2 hari lalu
Nearly one-fifth of global oil consumption flows through the Strait of Hormuz each day, located between Iran and Oman.
UGM Academics: US Trade Deal Violates Constitution, Sovereignty
2 hari lalu
A group of UGM professors and academics expressed their concern about the bilateral trade agreement between the United States and Indonesia.
Indonesia Says 1,000-Ton Rice Imports from U.S. Limited to Specialty Varieties
2 hari lalu
Indonesia is planning to import specialty rice from the U.S. as part of its obligation under the reciprocal trade agreement.
Negotiating Without Courage
2 hari lalu
The trade agreement between Indonesia and the United States descended into disarray after a poor performance by the negotiating team.
Indonesia's Export-Import Flows with Hormuz Strait Nations Explained
3 hari lalu
BPS stated that three of Indonesia's trading partners are located along the Strait of Hormuz route: Iran, Oman, and the United Arab Emirates.
How Indonesia and the United States Reached an Unequal Trade Deal
3 hari lalu
Indonesia's negotiating team, led by Coordinating Minister for the Economy Airlangga Hartarto, was overwhelmed during the trade negotiations.
Indonesia Posts Trade Surplus With Iran in 2025
4 hari lalu
Indonesia's total trade with Iran reached US$257.9 million in 2025.
Airlangga Says US Tariff on Indonesian Exports Now at 15 Percent
6 hari lalu
Minister Airlangga also guarantees that the zero percent tariff on certain export goods from Indonesia will still be in line with the initial deal.
