Indonesia Eyes Middle East Trade Amid Regional Conflict Concerns

Jakarta, Indonesia – Indonesia’s trade minister, Budi Santoso, stated Thursday that the Middle East currently accounts for 3.49% of Indonesia’s total exports, totaling approximately US$9.87 billion. This figure underscores the importance of safeguarding Indonesian exports from disruption amid escalating conflicts in the region, particularly those involving Israel, the United States, and Iran.

Minister Santoso made the remarks during the launch of the Campuspreneur Program: Development of Export-Oriented Young Entrepreneurs at Sebelas Maret University (UNS) Solo, Central Java. He noted that despite ongoing global geopolitical tensions, Indonesia’s export performance continues to demonstrate resilience. The country’s export value for January–February 2026 reached US$44.32 billion, a 2.19% increase compared to the same period in 2025, signaling robust global market opportunities for Indonesian products.

However, Santoso cautioned that the government remains vigilant regarding the potential impact of geopolitical conflicts on supply chain stability and market demand. The Ministry of Trade is actively implementing measures to expand and diversify export markets, aiming to reduce reliance on specific regions.

According to data from Statistics Indonesia (BPS) and the Indonesia Eximbank Institute, Indonesia’s exports to the Middle East represent 4.2% of the total national exports. Key commodities shipped to the region include palm oil, jewelry, and automobiles.

Rini Satriani, Head of the Indonesia Eximbank Institute, indicated that while the direct impact of the conflicts on Indonesia’s trade is expected to be limited due to the relatively small trade exposure with the Middle East, the potential for increased global energy price volatility and international trade logistics costs remains a concern. Indonesia’s imports from the Middle East account for approximately 3.9% of the total national imports, primarily consisting of energy commodities, particularly oil.

Indonesia’s major export destinations currently include East Asia (36.4%), Southeast Asia (20.8%), North America (11.5%), South Asia (9.6%), and Western Europe (5.7%). The economic dynamics within these regions are considered crucial determinants of Indonesia’s overall export performance.

The Indonesia Eximbank Institute is closely monitoring developments in the Middle East, including the security of strategic shipping routes such as the Strait of Hormuz, a vital trade passage. The government’s focus on market diversification is seen as increasingly relevant in light of the rapidly changing trade landscape.