Jakarta. An Iranian diplomat recently said that the ongoing Middle East conflict could deal an economic blow to other parts of the world, including Indonesia, something that the US and Israel were said to be already aware of before launching their attack.

It wasn’t just any weekend when the US and Israel fired a series of airstrikes on Tehran on Saturday local time. The military campaign quickly morphed into a regional conflict, as Iran launched drones on other Gulf Arab states that host US assets. 

Tehran is now facing two wars, according to Iranian Ambassador to Indonesia Mohammad Boroujerdi. The first one involves armed forces, while the other is a “narrative warfare backed by mainstream media to twist the truth”. And Boroujerdi claimed that Washington and Tel Aviv did not heed Tehran’s warnings on how an armed conflict could have a global economic impact.

“Before the war happened, we already warned [Israel’s] Zionist regime and the US that we didn’t want any wars. ... Wars bring insecurity not only to your country but also to other states in the region. They have a wide-reaching, regional impact. This will directly take toll on the global economy and other independent countries,” Boroujerdi told a press briefing in Jakarta.

“So let us analyze what this has done to your country, what sort of economic impact Indonesia is facing as a result of its strikes on Iran.”

Earlier that day, Indonesia’s senior economic minister Airlangga Hartarto said that the war — including threats of the Strait of Hormuz closure — could push up oil prices. But Airlangga said that Indonesia should be able to navigate the oil chaos, citing that the state-run oil firm Pertamina had secured supplies from sources outside the Middle East, referring to the multibillion-dollar commercial deals to procure American energy. 

The Jakarta Globe asked Airlangga if the regionwide conflict could affect Indonesia’s exports, as other trading partners such as the United Arab Emirates and Bahrain have become targets of Iranian retaliatory strikes.

“[The impact on export] will depend on how long this war lasts,” Airlangga said.

Business lobby Apindo said that Indonesian companies were mostly fretting about spikes in energy prices and international logistics costs, as war-induced uncertainties loom over the strategic sea passage Strait of Hormuz. 

“We are keeping an eye on possible spillover inflation to food. Rising energy prices will impact distribution, logistics, and transportation costs for food commodities,” Apindo chairwoman Shinta Kamdani told the Globe. 

“Under certain conditions, this pressure could accelerate price increases for staple foods, especially if accompanied by global supply disruptions or a weakening exchange rate. That’s why we need to keep food supply and distribution in check if the conflict’s effects become widespread and last longer than expected," she said.