Jakarta. A senior minister said Friday that the ongoing Thailand-Cambodia clash had little to no effect on Indonesia’s economy so far, although Jakarta has called on its ASEAN neighbors to settle their differences peacefully.

The border dispute stems from a 1907 map created during the French colonial rule to divide Cambodia from Thailand. However, the two Southeast Asian countries interpreted the map differently. The clash recently escalated dramatically on Thursday, which saw Thailand and Cambodia accusing each other of firing the first shots. Amidst fears that the military exchanges might grow into war, Chief Economic Affairs Minister Airlangga Hartarto commented on the dispute’s economic impact, or lack thereof.

“I don’t think the Cambodia conflict has an impact on Indonesia yet. The war is still ‘limited’,” Airlangga told reporters in his office.

On the other hand, analyst Bhima Yudhistira warned that the conflict could disrupt supply chains—particularly of automotives and electronics—if the clash continues. Bhima stated that the war could put pressure on Indonesian manufacturing plants as Jakarta had been procuring Thai spare parts. According to Bhima, a prolonged clash will likely deter investment inflows.

“It can spark worries over economic instability in ASEAN. Many investors view ASEAN, including Indonesia, Thailand, and Cambodia, as countries that are benefiting greatly from the trade war. Of course, this can turn 180 degrees if conflict hits ASEAN,” Bhima told the Jakarta Globe later that day.

Official statistics showed that Thailand was the bigger trading partner for Indonesia as trade figures reached nearly $7.9 billion in January-May 2025. Indonesia-Cambodia trade totaled $434.4 million over the same five-month period.

Foreign Affairs Ministry’s spokesman Rolliansyah “Roy” Soemirat said that Jakarta was keeping a close eye on the dispute’s developments. 

“We are confident that the two neighboring countries will immediately return to peaceful means  to settle their differences in line with the principles enshrined in the ASEAN Charter and the Treaty of Amity and Cooperation,” Roy said.

The ASEAN Charter is the bloc’s key document that states members should respect each other’s territorial integrity. The document also calls on members to not interfere with what goes on in their ASEAN neighbors. Malaysian Prime Minister Anwar Ibrahim has called for an immediate ceasefire between Thailand and Cambodia. Malaysia currently assumes ASEAN’s rotating chairmanship.

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