BOGOR RAYA DAILY – The conflict between Iran and the United Arab Emirates (UAE) not only has an impact in the Middle East region, but is starting to spread to various countries, including Indonesia. In an official statement in Jakarta, the UAE emphasized that the impact of this conflict is global and affects world economic stability.
One crucial point is the Strait of Hormuz, a strategic route through which around 20 percent of the world’s oil supplies and global LNG trade pass. Disruptions in this region have the potential to trigger a significant spike in energy prices.
Most of the energy distribution from the region flows to Asia, with a portion reaching 80 to 90 percent. This means that countries like Indonesia are in a vulnerable position to price fluctuations and supply disruptions.
Also Read: UAE Reveals Major Iranian Attack: Thousands of Drones Shot Down, Civilian Casualties Fall
Direct impacts that are starting to be felt include rising fuel prices, increasing logistics costs, and pressure on global supply chains. This condition has the potential to trigger inflation and suppress people’s purchasing power.
In addition, international shipping costs are also expected to increase due to regional instability. This has an impact on the prices of imported goods which have the potential to rise in the near future.
The UAE emphasized that this conflict is not just a regional issue, but a threat to global economic stability. Therefore, a collective response from the international community is needed to prevent wider impacts.
Also Read: UAE Embraces Indonesia and the World, 136 Countries Condemn Iran: Stability Maintained Amid Global Threats
In the Indonesian context, this situation is a warning for the government and economic actors to prepare for potential turmoil. Energy diversification and strengthening economic resilience are strategic steps that need to be considered.***
