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Iran-Israel War Only Lowers Indonesian Economy By 0.05 Percent

The negative impact of the war between Iran and Israel on the Indonesian economy is quite small, compared to other countries such as the Middle East and the West. 

This was conveyed by Indef researcher Ahmad Heri Firdaus, in responding to the negative impact of the Iran-Israel war in a virtual event initiated by Indef with the theme "The Impact of the Iran-Israel War on the Indonesian Economy", Sunday, June 29, 2025. 

"Meanwhile, the impact on Indonesia itself is small, so the Israel-Iran war has the potential to reduce economic growth by 0.05 percent. This means that if our economy grows by 5 percent, it will only decrease by 0.05 percent," explained Ahmad Heri Firdaus. 

However, according to Ahmad, he reminded the government to remain aware of the impact on the Chinese and United States markets. 

"This is indeed small if we look at it, but if for example there is an indirect impact due to the Israel-Iran war, China is also affected, Japan is also affected, it is feared that it could have an indirect impact on Indonesia," he said. 

He added, if import demand from Middle Eastern countries drops sharply due to the war, then it is possible that the domestic economy will also be badly affected. 

"If for example import demand from the Middle East for products from China decreases, it could be that our exports to China have decreased, that is an indirect impact," he concluded. 

Tag: Ahmad Heri Firdaus Indonesian Economy Iran Israel