JAKARTA — The government has urged the public to remain calm amid growing global uncertainty stemming from the escalating war between the United States and Iran. The government has confirmed that various measures have been prepared to maintain public purchasing power and national economic stability.
Coordinating Ministry for Economic Affairs Spokesperson Haryo Limanseto stated that his office has coordinated with the Ministry of Finance to ensure the state budget is ready to mitigate the impact of the conflict, particularly on the energy and food sectors.
“The main focus is to maintain people’s purchasing power in the event of commodity price fluctuations, especially energy prices, at the global level,” Haryo said.
He emphasized that various policies currently issued by the government are aimed at ensuring that domestic consumption is not disrupted.
“This step is expected to provide a strong economic cushion to drive domestic consumption amidst global uncertainty,” he explained.
As a concrete step, the government is expediting the distribution of food aid, consisting of 10 kilograms of rice and 2 liters of cooking oil, to 35.04 million beneficiary families (KPM). The government is also preparing follow-up policies ahead of Eid al-Fitr to maintain price stability and maintain purchasing power.
On the energy side, PT Pertamina ensures that national fuel and LPG stocks are secure during Ramadan and Eid al-Fitr. Based on its experience in 2025, Pertamina is also preparing alternative shipping routes to maintain the oil supply chain and stabilize domestic fuel prices.
“The government urges the public to remain calm, and we will continue to monitor the situation from time to time and take necessary measures for the benefit of the community,” Haryo said.
On the monetary side, the government continues to coordinate with Bank Indonesia to maintain rupiah exchange rate stability. Haryo stated that foreign exchange reserves reached US$154.6 billion as of January 2026 and were considered relatively safe as a stabilization instrument.
Bank Indonesia also reaffirmed its readiness to respond to market pressures stemming from global sentiment. Head of the Monetary and Securities Asset Management Department (DPMA) at BI, Erwin Gunawan Hutapea, assured that the monetary authority would act as needed.
“Bank Indonesia will continue to monitor market movements closely and respond appropriately,” Erwin said.
BI has prepared a triple intervention strategy through spot market transactions, Domestic Non-Deliverable Forwards (DNDF), and intervention in overseas markets through Non-Deliverable Forwards (NDF) to reduce rupiah volatility.
The escalation of conflict in the Middle East has triggered risk-off sentiment in global financial markets and pressured the currencies of several developing countries, including the rupiah. United States President Donald Trump has predicted that military operations against Iran could last up to four weeks.
However, the government emphasized that the national economic foundations remain strong and that various fiscal and monetary instruments are ready to be used to maintain stability.
