Why is Indonesia concerned about the US-Iran conflict?

Indonesia is heavily reliant on energy imports, making it vulnerable to global oil price surges caused by geopolitical instability. A conflict between the US and Iran could significantly impact IndonesiaS economy.

What emergency steps should Indonesia take to address rising oil prices?

Economists suggest Indonesia should revise its energy subsidy policies to mitigate the state budget deficit.Strengthening coordination between Bank Indonesia and the Ministry of Finance is also crucial for rupiah stabilization.

How could the Middle east conflict affect Indonesia's economic growth?

A prolonged conflict could hinder Indonesia's economic growth, potentially reducing it from the targeted 5% to around 4.5% annually. Rising fuel import costs and sluggish purchasing power contribute to this concern.

What is the current status of global oil prices?

Brent crude oil prices have increased by 18% as June 10, 2025, reaching nearly a five-month high of $79.04 per barrel on June 19, 2025, following the Israeli attack on Iranian nuclear sites.

What measures can stabilize the Indonesian Rupiah during global turmoil?

Monetary intervention by Bank Indonesia, coupled with clear and consistent policy communication, is essential to maintain market confidence and stabilize the Rupiah exchange rate amidst global economic uncertainties.

How does fuel price inflation impact Indonesian consumers and businesses?

Fuel price increases lead to broader price inflation, affecting both businesses and consumers. This can slow down household consumption growth and negatively impact overall economic activity in Indonesia.

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Indonesian economy

Business

Latest, this is a list of the 10 rios of the ri as of July 2025

by Priya Shah – Business Editor July 7, 2025

written by Priya Shah – Business Editor

Indonesian Tycoons Dominate World’s Richest List

Energy and investments propel fortunes on Forbes Realtime ranking.

Several Indonesian citizens have achieved prominent positions on the Forbes Realtime list of the world’s wealthiest individuals, showcasing the nation’s growing economic influence. These individuals’ fortunes are closely tied to their holdings in energy, tobacco, and various investments.

Top Rankings and Key Players

Currently, the wealthiest Indonesian is Low Tuck Kwong, owner of the energy company PT Bayan Resources Tbk (BYAN). His net worth is approximately US $27.31 billion, equivalent to Rp443.72 trillion. The value of Kwong’s assets is closely linked to the performance of BYAN shares.

Prajogo Pangestu holds the second position with a fortune of US $25 billion. His wealth has seen a considerable increase recently, boosted by the performance of PT Petrindo Jaya Kreasi Tbk (CUAN) stock since its IPO on the Indonesia Stock Exchange.

The Hartono Brothers

**R. Budi Hartono** and **Michael “Bambang” Hartono**, brothers, occupy the third and fourth positions, respectively. **R. Budi Hartono’s** assets total US $21.9 billion, while **Michael Hartono** possesses US $21.1 billion. The majority of their wealth stems from investments in Bank Central Asia; their family also has deep roots in the kretek cigarette industry.

Other Notable Figures

Following the **Hartono** brothers is **Sri Prakash Lohia**, a textile industry conglomerate, with assets valued at US $8.5 billion. The remaining individuals in the top 10 richest Indonesians include:

Otto Toto Sugiri – US $6.8 billion
Tahir and family – US $6 billion
Agoes Projosasmito – US $5.9 billion
Marina Budiman – US $4.8 billion
Dewi Kam – US $4.8 billion

Global Wealth Context

As of July 2025, the richest person in the world is Bernard Arnault & family, with a net worth of $241.2 billion. His fortune, which includes holdings in LVMH, demonstrates that wealth accumulation continues across diverse industries and regions (Forbes Real-Time Billionaires 2025).

July 7, 2025 0 comments

Business

US-Israel Iran Attack: Indonesia Braces for Impact

by Priya Shah – Business Editor June 22, 2025

written by Priya Shah – Business Editor

Indonesia on High Alert as US Strikes Iran, Oil Prices Surge

Table of Contents

Indonesia on High Alert as US Strikes Iran, Oil Prices Surge

Jakarta – The escalating conflict between Israel and Iran, now involving direct US military intervention with attacks on Iranian nuclear facilities, has triggered serious concerns in Indonesia. Economists are warning of significant economic repercussions and urging immediate goverment action.

Economists Urge Swift Action to Mitigate Economic Impact

Andalas University economist Syafruddin Karimi emphasized the urgency for Indonesia to address the potential economic fallout. He stated that the conflict’s impact extends beyond the middle East, threatening the economic and geopolitical stability of developing nations, including Indonesia. Karimi called for immediate emergency measures to counter the anticipated surge in global oil prices.

did you Know? the Strait of Hormuz, a critical chokepoint for global oil supplies, sees approximately 21 million barrels of crude oil pass through it daily, representing around 21% of global petroleum consumption[[EIA]. Any disruption there could send prices soaring.

Karimi highlighted that Indonesia’s reliance on energy imports would create a significant fiscal burden if oil prices exceed $100 per barrel. Since June 10, 2025, Brent crude oil prices have already jumped 18%, reaching a nearly five-month peak of $79.04 on June 19, 2025, following the Israeli strikes Nasdaq.

“Delaying the revision of the energy subsidy policy will only worsen the state budget deficit,” Karimi warned.

Rupiah Stabilization and Inflation Concerns

Experts also suggest that Bank Indonesia and the Ministry of Finance must enhance their coordination to stabilize the Rupiah. The current global instability could trigger capital outflows, putting downward pressure on the exchange rate and fueling inflation.

Pro Tip: Monitoring the Jakarta Interbank Spot Dollar Rate (JISDOR) can provide insights into the Rupiah’s performance and potential intervention points for Bank Indonesia.

“Monetary intervention must be accompanied by sharpening policy communication so that the market remains calm,” Karimi added.

Economic Growth at Risk

Bhima Yudhistira, Executive Director of the Center for Economic and Law Studies (Celios), echoed these concerns, noting that the widespread Middle East conflict could significantly drive up oil prices. Higher fuel import costs will likely cause government-regulated price inflation to surge, especially when consumer purchasing power is already weak.

“This is not a good inflation; once the price of fuel rises, forwarded to business actors and consumers makes the growth of household consumption slowed down,” Bhima explained.

A prolonged war could jeopardize Indonesia’s 5% economic growth target, with the external environment posing significant challenges, compounded by government budget inefficiencies.

“the projection if the war lasts longer, the Indonesian economy will only grow 4.5% year on year this year. The more severe to reach the target of 8% of economic growth because the external situation is too heavy,” he said.

Potential Economic Impacts on Indonesia
Factor	Potential Impact	mitigation Strategy
Oil Price Surge	Increased fiscal burden, higher inflation	Revise energy subsidies, diversify energy sources
Rupiah Depreciation	Increased import costs, capital outflow	Monetary intervention, policy communication
Economic Growth	Slowed growth, reduced consumer spending	Improve budget efficiency, stimulate domestic demand

Indonesia’s Economic Vulnerability: A Ancient Viewpoint

Indonesia’s susceptibility to global oil price fluctuations is not new.Throughout its history, the nation has faced economic challenges stemming from its dependence on imported energy. Past crises have prompted various policy responses, including subsidy adjustments and diversification efforts. Understanding these historical trends is crucial for formulating effective strategies to navigate the current crisis.

Frequently Asked Questions

What other measures should Indonesia consider to protect its economy?

How can individuals prepare for potential economic hardship?

Share your thoughts and concerns in the comments below. Subscribe to our newsletter for the latest updates on the global economic situation.

June 22, 2025 0 comments

Business

Indonesia’s Trade War Triumph: A Bright Economic Signal

by Chief editor of world-today-news.com April 28, 2025

written by Chief editor of world-today-news.com

Indonesia’s Economic Resilience Shines Amid Global Uncertainty

Jakarta — May 3,2024 —

Indonesia’s economy is thriving despite global headwinds,demonstrating remarkable resilience.The latest data reveals robust investment figures, a surging stock market, and positive ratings from global financial institutions. The Jakarta Composite Index is seeing remarkable recovery. This strong performance underlines Indonesia’s increasing attractiveness to both domestic and international investors.For more details, read on.

Indonesia’s Economic Resilience Shines Amid Global Uncertainty

April 28, 2025

Key Takeaways: Indonesia’s Economic Strength

Stock Market Surge: The Jakarta Composite Index (JCI) has shown remarkable recovery, outperforming major global indexes.
Investment Growth: Realized investment in Q1 2025 reached Rp 465.2 trillion, a 15.9% increase year-over-year. [1]
UBS Upgrade: Global financial institution UBS raised Indonesia’s ranking to “overweight,” signaling strong investment confidence.

Jakarta Composite Index (JCI) Leads Global Recovery

Amidst global economic tensions fueled by trade wars, Indonesia’s stock market has emerged as a star performer. As April 8, 2025, the JCI has jumped 10.64%, marking it as the fastest recovering market globally after a downturn triggered by tariff warfare.

Did You Know?

Indonesia’s economic growth is partly fueled by foreign direct investment (FDI), indicating strong investor confidence in the country’s potential. [3]

This performance surpasses that of developed markets. For instance, the S&P 500 in the United States saw an increase of only 7.89%, while Germany’s DAX index rose by 8.29%, and Japan’s Nikkei by 5.62%.

Investor confidence in Indonesia’s domestic economic stability is a key differentiator.

Investment realization Soars in Q1 2025

The Indonesian economy is experiencing a surge in investment. Minister of Investment/Head of BKPM Rosan Roeslani announced on April 23, 2025, that investment realization in the first quarter of 2025 reached Rp 465.2 trillion, a 15.9% increase compared to the same period last year. [1]

This achievement represents 24.4% of the annual target and has generated 594,104 jobs. Notably,over half of the investment (50.9%) is flowing outside of Java, indicating increasing economic equality across Indonesia.

Pro Tip

Keep an eye on regional investment trends. The increasing flow of investment outside Java suggests growing opportunities in other parts of indonesia.

UBS Raises indonesia’s Ranking to “Overweight”

UBS, a global financial institution, officially upgraded Indonesia’s ranking from “neutral” to “overweight” in its global Equity strategy Report dated April 24, 2025. In stock investment, overweight is used by analysts to recommend buying more of a stock as it is indeed expected to provide higher yields.

UBS views the Indonesian stock exchange as undervalued, approaching its lowest valuation since the pandemic.The institution also projects notable inflows from domestic institutions like BPJS Employment over the next three years.

Key reasons for UBS’s upgrade include:

Attractive Valuation: The indonesian stock market’s valuation is at a COVID-era low compared to its history and other ASEAN countries.
Domestic Institutional investment: BPJS employment and other domestic institutions are expected to increase their allocation to the domestic stock market, with UBS estimating inflows of $8.3 billion over the next three years.
Defensive Market: Indonesia has low exposure to international trade and minimal exposure to the U.S. market, making it a defensive choice amid global uncertainty.
Positive Sentiment: The UBS analyst team shows the highest positive sentiment in five years regarding Indonesian shares, reflecting confidence in fundamentals and growth potential.
Reduced Uncertainty: Previous obstacles are subsiding, eliminating a risk factor in the Indonesian capital market.

In essence, Indonesia is seen as an undervalued yet solid market, suitable for defensive and domestic investment strategies amidst global uncertainty.

President Subianto’s Policies Gain Trust

These economic indicators signal that Indonesia’s foundation is not only sturdy but also increasingly recognized globally. This success confirms Indonesia’s attractiveness to global investors and reflects the trust gained by President Prabowo Subianto’s policies.

President Subianto has emphasized the importance of domestic resilience amidst global uncertainty. The recent economic data suggests that this strategy is yielding positive results.

Indonesia is a market with low exposure to international trade and is very minimal on the US market. This makes Indonesia a defensive choice amid the global uncertainty that is being triggered by a trade war.

Maintaining Momentum

The government must maintain this positive momentum and these results. Despite challenging global economic conditions, Indonesia has demonstrated strength and resilience, standing out when many other countries are struggling.

Frequently Asked Questions (FAQ)

why is Indonesia’s stock market performing well?: Investor confidence in Indonesia’s domestic economic stability is growing.
How much did investment increase in Q1 2025?: Investment rose by 15.9% compared to the same period last year,reaching Rp 465.2 trillion.
What does UBS’s “overweight” rating mean?: It signals strong confidence in indonesia’s investment potential and recommends buying more Indonesian stocks.

April 28, 2025 0 comments

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