Indonesian President Prabowo Subianto has urged the public to prepare for potential economic difficulties stemming from the ongoing conflict in the Middle East, emphasising that global instability may affect countries far beyond the region.
Prabowo delivered the statement while inaugurating the Bailey Bridge and Armco Bridge in Aceh on Monday, 9 March 2026. During his remarks, the president stressed that the government would not conceal the challenges facing the country.
“We are not hiding behind the existing system. We are facing difficulties with an attitude of overcoming them. We must have the courage to overcome them. We are not covering up the difficulties, we are not pretending that they don’t exist,” Prabowo said.
Despite the challenges, he assured the public that Indonesia has strong foundations to deal with global uncertainties.
“We have great strength. But I must also be honest with all the people, and I will give a briefing to the entire Indonesian nation in the near future,” he continued, as quoted from Kompas.
According to Prabowo, the current geopolitical climate has created instability across the world. He noted that Indonesia must acknowledge these realities and prepare accordingly.
The president also expressed pride in the role played by the Indonesian National Armed Forces.
“But today I feel proud that once again, the Unitary State of the Republic of Indonesia (NKRI), of which the Indonesian National Armed Forces (TNI) is one of the main pillars, has proven to all the people that the TNI is the people’s army,” Prabowo added.
Global tensions reshape modern geopolitical conflicts
Observers note that current geopolitical tensions differ from traditional wars centred solely on territorial disputes. Instead, competition increasingly revolves around control of strategic resources and infrastructure.
Geopolitical and geostrategy observer Bungas T. Fernando Duling said the world is currently experiencing a prolonged period of tension rather than an immediate threat of nuclear conflict.
He explained that modern proxy conflicts increasingly involve competition over energy resources, airspace control, and global logistics routes.
Fernando Duling also pointed to Indonesia’s diplomatic positioning amid the growing rivalry between the United States and China.
“This is a well-thought-out, intelligent calculation. While the US in the Trump era (and post-Obama) tends to be protectionist yet aggressive toward hotspots like Iran, Indonesia is taking a position as an ‘independent balancer’,” he said in a statement on Wednesday, 11 March.
According to him, Indonesia’s stance reflects the continued relevance of the Ten Principles of Bandung, which emphasise independence and non-alignment in international relations.
He argued that aligning too closely with a single global bloc could risk turning Indonesia’s natural resources into instruments for other nations’ economic growth.
Energy policy and domestic resilience
Fernando Duling also highlighted Indonesia’s strategic position in the global energy market. As the world’s largest exporter of thermal coal, Indonesia has considerable influence over regional energy supply.
He noted that policies such as strengthening the Domestic Market Obligation (DMO) for coal exports could serve not only economic purposes but also geostrategic ones.
“The new logic is that if we used to be proud of supplying electricity to China, India, and Japan, now the logic is reversed. Coal must become the ‘lifeblood’ of domestic industry,” he said.
He added that prioritising electrification using domestic resources could reduce reliance on imported fuel, which places pressure on the state budget.
“This is both a defensive and offensive step in the global economy,” he said.
Government reviews potential economic impact of Middle East conflict
Concerns about global instability were also discussed during a meeting between President Prabowo and senior economic officials.
According to Tempo, Prabowo met with National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan and other council members on Wednesday, 11 March 2026, to assess global economic developments.
Cabinet Secretary Teddy Indra Wijaya said the meeting focused on the potential impact of escalating tensions in West Asia on Indonesia’s economy.
The region has experienced heightened tensions since the United States and Israel launched attacks on Iran on 28 February 2026. Iran subsequently carried out retaliatory strikes against Israel and neighbouring countries hosting US military bases.
“President Prabowo received the Chairman and Members of the National Economic Council (DEN) along with several relevant ministers to discuss global economic developments, including the potential impact of the escalation of the Middle East conflict on the global economy and Indonesia, in Jakarta,” Teddy said in a written statement on Thursday, 12 March 2026.
National energy supplies remain secure
During the meeting, officials also reviewed the condition of Indonesia’s domestic energy supply.
According to Teddy, the government has ensured that national reserves of fuel oil and natural gas remain sufficient to meet current demand.
“During the meeting, it was conveyed that the national supply of fuel oil and gas is sufficient,” Teddy said.
“The government will continue to monitor developments in global energy prices and prepare mitigation measures to minimise the impact on the APBN (State Budget).”
He added that authorities are closely monitoring global market developments to ensure that domestic energy stability remains under control.
People Also Ask (PAA)
1. Why did Prabowo warn Indonesians about difficulties from the Middle East war?
Prabowo said global instability caused by the Middle East conflict could affect the global economy, potentially influencing Indonesia through energy prices, trade disruptions, and geopolitical tensions.
2. How could the Middle East conflict impact Indonesia’s economy?
The conflict could affect global oil prices, supply chains, and international markets, which may indirectly influence Indonesia’s state budget, energy costs, and trade flows.
3. Is Indonesia’s energy supply currently safe?
According to the government, national supplies of fuel oil and gas remain sufficient, and authorities are monitoring global energy price developments.
4. What is Indonesia’s geopolitical stance in global conflicts?
Indonesia traditionally follows a non-aligned foreign policy based on the Bandung Principles, positioning itself as an independent actor rather than aligning with major global blocs.
5. Why is coal important for Indonesia’s strategy?
As the world’s largest exporter of thermal coal, Indonesia can use its coal resources strategically to support domestic industry and strengthen national energy security.
Photo cover ksp.go.id/
