Amid Global Tensions, Indonesia Moves to Strengthen Domestic Market

TheIndonesia.co - Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted the importance of strengthening the domestic market to anticipate the impact of ongoing global geopolitical conflicts.

“That was a directive from President Prabowo Subianto to strengthen our domestic market,” Hartarto said on Friday, March 6, as quoted by Antara.

Hartarto referred to the recent attacks by the United States and Israel on Iran, which have created uncertainty affecting stability in several economic sectors, including transportation and logistics.

“Transportation has been disrupted, particularly in routes linked to the Middle East. Several flights have been grounded, including those transiting through Dubai, Qatar, and Doha, where around 90 million passengers pass through the region each year. This has had a significant impact on both Europe and Asia,” he said.

He added that shipping activities have also been affected, with some vessels unable to operate normally, prompting the government to remain cautious in managing the economy through the end of the year.

Hartarto said the government must therefore explore various alternatives to address disruptions in affected sectors.

“We are seeking other alternatives because this is not the first time we have experienced such a situation. Based on past experiences, the government will certainly respond quickly,” he said.

According to Hartarto, the government is strengthening coordination among ministries and agencies in preparing mitigation measures, including with the Ministry of Trade, which plays a key role in both domestic and international trade.

“I spoke with the Minister of Trade. We must protect our domestic production because every country is looking for a large market. Indonesia, with a population of around 287 million, is the largest market in ASEAN,” he said.

In addition to strengthening the domestic market, Indonesia has begun shifting part of its crude oil imports from the Middle East to the United States to ensure sufficient energy supplies.

Energy and Mineral Resources Minister Bahlil Lahadalia confirmed on March 4 that the import process is underway, adding that shipments cannot be carried out all at once due to the country’s limited crude oil storage capacity.