Analyst Urges Stronger Subsidies and Market Oversight as Global Pressures Mount

RRI.CO.ID, Jakarta - Global market disruptions following the escalation in the Strait of Hormuz is expected to put pressure on Indonesia’s economy. Economic analyst, Irfan Syauqi Beik, warned that rising oil prices and imported inflation pose serious risks to domestic stability.

In an interview with RRI Voice of Indonesia (VOI) in Jakarta, Tuesday, 3 March 2026, Irfan called for decisive government intervention. He stressed that fiscal and financial authorities must move swiftly to mitigate the external shock.

According to him, disruptions in the strategic energy trade route could immediately push global crude oil prices higher. “Any disruption in the Strait of Hormuz will directly raise global oil prices,” he said.

As a net oil importer, Indonesia is particularly vulnerable to such developments. “Higher oil prices will increase our import burden and eventually affect domestic prices,” he said.

Irfan explained that rising energy costs would increase production expenses across various industries. “This can trigger higher input and production costs, which will ultimately push up commodity prices,” he noted.

He emphasized the need for decisive fiscal intervention to cushion the impact. “The fiscal authority, in this case the Minister of Finance, must take robust fiscal measures and utilize our fiscal capacity to minimize the impact,” he said.

Beyond fiscal measures, Irfan highlighted the importance of preventing imported inflation and ensuring strict capital market supervision. “The main point is how the government can prevent imported inflation, and profit-taking activities must be strictly supervised,” he stated.

He concluded that strong coordination among Bank Indonesia, the Finance Ministry, and financial regulators is essential to maintain investor confidence. “We want the authorities to closely monitor the situation so Indonesia can withstand external pressures and maintain economic stability,” Irfan said.