TEMPO.CO, Jakarta - Indonesian Minister of Trade Budi Santoso stated that current geopolitical dynamics, specifically the conflict involving the United States, Israel, and Iran, will inevitably alter the global trade landscape.
He noted that geopolitical disruptions, such as the closure of the Strait of Hormuz, could severely fracture global supply chains, thereby hindering both export and import activities. However, he suggested that a loophole exists for entrepreneurs to capitalize on these distribution disruptions.
The strategy involves encouraging business owners to diversify their markets toward countries facing supply shortages due to global chain failures, particularly in Africa or Southeast Asia. "But we also need to be vigilant; we must accurately assess whether those areas are indeed heavily affected," he remarked at the Ministry of Trade complex in Jakarta on Thursday, March 5, 2026.
The targets for this market diversification are Micro, Small, and Medium Enterprises (MSMEs). According to Budi, the majority of MSMEs are relatively new to exporting, which makes it easier for them to pivot their market focus in the short term.
Budi mentioned plans to meet with representatives of Indonesian exporters, including the Indonesian Export Companies Association. He explained that the meeting aims to address the challenges faced by exporters, including the potential for market diversification. Furthermore, some exporters are also reliant on imported raw materials for production.
Ateng Hartono, Deputy for Distribution Statistics and Services at the Central Statistics Agency (BPS), stated that the impact of the Iranian conflict on Indonesia's trade with Middle Eastern nations still requires a thorough assessment. However, as an illustration, he pointed out that three of Indonesia's trading partners, Iran, Oman, and the United Arab Emirates, are situated along the Strait of Hormuz.
Ateng noted that the value of non-oil and gas imports from Iran to Indonesia in 2025 reached US$8.4 million, while non-oil and gas exports from Indonesia to Iran that same year amounted to US$249.1 million.
Regarding trade with Oman, the value of non-oil and gas imports in 2025 reached US$718.8 million, while exports to the country totaled US$428.8 million.
Meanwhile, imports from the United Arab Emirates reached US$1.4 billion. Indonesia's non-oil and gas exports to the UAE in 2025 amounted to US$4.0 billion.
The Strait of Hormuz serves as a vital artery for global trade. This route facilitates approximately 20 percent of the world's oil consumption and 20 to 25 percent of the global liquefied natural gas (LNG) trade. Disruptions in the Strait occurred following attacks by the United States and Israel on Iran on Saturday, February 28, 2026.
Anastasya Lavenia contributed to the report
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