TEMPO.CO, Jakarta - Israel and the US' war on Iran has disrupted the Gulf economy, said Mohamad Bawazeer, the chair of the Saudi Bilateral Committee at the Indonesian Chamber of Commerce and Industry (Kadin).
"I believe if the Gulf region is safe from attacks, the flow of commerce will become smoother," Bawazeer said in a statement in Jakarta on Saturday, April 4, 2026.
The impacts of Iran have devastated the economic activities across the Middle East, from the international shipping ocean rates surging at least three times more expensive.
A number of vessels are also hesitant to issue booking numbers due to the risk of war, taking a 'wait and see' approach. Some ships are navigating around the Bab-el-Mandeb (Red Sea) and are detouring through Africa, then entering through the Suez Canal (Egypt).
This has delayed delivery times for two months, whereas under normal circumstances it would only take 15-20 days to arrive at the Dammam and Jeddah ports.
Thousands of containers are also stranded at the Jebel Ali Port as they fail to exit through the Strait of Hormuz unless approved by local authorities.
This situation disrupts business situations in Saudi Arabia, affecting both finished products and raw materials for trade or industrial needs, and will certainly lead to price hikes.
"So, this situation is caused by unclear war prospects," Bawazeer said.
Meanwhile, Minister of Trade Budi Santoso mentioned that the escalation between the United States and Iran is likely to put pressure on several sectors of Indonesia's trade, especially those directly related to energy and logistics costs.
Budi Santoso said the biggest impact would be felt if there were a disruption in global oil distribution, including the possible closure of the Strait of Hormuz. He believes that the energy sector will be the first to be affected.
He said that the manufacturing sector is one of the most vulnerable. Indonesian processing, which relies on energy for the production process, will face increased operational costs.
Furthermore, the rising production costs pose a risk of pressing business margins or driving up the prices of goods. This situation could potentially reduce the competitiveness of Indonesian products in the global market.
Moreover, the export sector will face double pressure, namely increased production costs and weakened global demand due to economic uncertainty.
Read: Trade Minister: Middle East Accounts for 3.49% of Indonesia's Total Exports
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