Jakarta. The Asian Development Bank (ADB) is offering Indonesia and other developing member countries financial support to mitigate the fiscal strain that might arise from the three-week-long Iran war.

The lender is also open to helping ensure that the Asia and Pacific have undisrupted energy flows. ADB, however, did not disclose the amount of the countercyclical lending buffer, as this support is only available if Indonesia finds such a lifeline to be necessary. 

“ADB will deliver rapid, flexible, and scalable assistance to help countries manage immediate pressures and strengthen long-term resilience, notably fast-disbursing budget support and trade and supply chain finance to secure the import of essential goods, now including oil,” ADB President Director Masato Kanda said Tuesday.

There are two ways ADB will lend a hand, the first being the rollout of the multinational lender’s so-called countercyclical support facility. This fast-disbursing budget support can help Jakarta stabilize its economy and lessen the conflict’s impact on vulnerable groups. 

The second assistance takes the form of the Trade and Supply Chain Finance Program (TSCFP). This program — which provides AAA-rated guarantees and loans — is open to assist the private sector in ensuring continuous flows of critical imports, be it energy or food. Shipments through the Strait of Hormuz, one of the world’s busiest oil shipping channels, have ground to a halt after the US-Israeli coordinated attack on Tehran. As the conflict shows no sign of cooling down, ADB has temporarily reactivated support for oil imports on an exceptional basis.

The bank claimed to have begun talks with all the “severely affected” members on possible immediate support. However, it did not go into details on which countries they were specifically referring to. 

The Indonesian government has not made an official comment on whether it would accept ADB’s helping hand. The Strait of Hormuz closure has fueled oil price hikes, even causing the global benchmark Brent crude to top $100 a barrel.

Finance Minister Purbaya Yudhi Sadewa said Wednesday that Indonesia was still far from a national energy emergency, although fellow ASEAN member the Philippines has declared such a status. 

“Our state budget can still withstand [the impact]. I will not change the budget or subsidies until the price reaches sky-high,” Purbaya told reporters.

“We still have our energy supplies. I don’t think we have entered an emergency, but it is something that we have to brace ourselves for, especially if this continues to happen.”