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Showing posts with the label Iran Conflict Global Economy Inflation Geopolitics Energy Crisis

The Impact of the Iran Conflict on Indonesia’s Economy

JAKARTA, H OS LAW FIRM — Conflict in the Middle East, particularly involving Iran, once again shows how global conditions can quickly affect Indonesia’s economy. For some people, such conflicts may feel distant from everyday life. However, in reality, the impact can be felt directly—especially through rising prices of basic necessities and increasing economic instability. Two major effects that need attention are the rise in global oil prices and the potential outflow of foreign capital from Indonesia. One of the most immediate impacts is the increase in oil prices. The Middle East is a central hub of global oil production, and key routes such as the Strait of Hormuz serve as major channels for oil transportation. When conflict occurs in the region, oil supply can be disrupted, causing global oil prices to rise. For Indonesia, which still relies on oil imports, this situation becomes a serious issue. When global oil prices increase, the impact does not stop at the energy sector. T...