IdnAround.com – Iran’s attack on Israel not only increases tensions between the two countries and in the Middle East region, but also has the potential to have an impact on the Indonesian economy. Bhima Yudhistira, Executive Director of the Center of Economic and Law Studies (CELIOS), revealed that there were at least four serious consequences of this attack on the Indonesian economy.
First, this attack has the potential to increase crude oil prices by 4.4% year on year (yoy) to US$ 85.6 per barrel. Iran is one of the largest oil producers in the world, and the impact of this conflict could disrupt the production and distribution of oil from Iran.
“The increase in oil prices could have an impact on widening energy subsidies, causing the rupiah exchange rate to weaken,” said Bhima Yudhistira, Sunday (14/4/2024).
Second, this attack also has the potential to cause foreign investment to leave developing countries. Investors may look for more stable investment instruments, such as gold or US dollars. As a result, the rupiah could weaken to Rp. 17,000 per US dollar.
Third, Indonesia’s export performance also has the potential to be disrupted, especially to markets in the Middle East, Europe and Africa. This could cause Indonesia’s economic growth to slow down again, estimated to be in the range of 4.6-4.8% in 2024.
Fourth, Iran’s attack on Israel also has the potential to trigger inflation due to rising energy prices. Disruptions in global supply chains can also encourage manufacturers to seek raw materials from other sources, which in turn can increase production costs. Ultimately, this increase in production costs will likely be transferred to consumers in the form of increased prices of goods.
Read Also : Happy Eid Al-Fitr 1445H
Get the latest information on daily popular news from IdnAround.Com. For other collaborations, you can contact our email or other social media.
