Indonesia Navigates Middle East Conflict to Maintain Trade Resilience

Jakarta, Indonesia – Despite escalating conflicts in the Middle East, Indonesia is demonstrating resilience in its trade performance, with the region currently accounting for approximately 3.49% of the nation’s total exports. While acknowledging potential disruptions, the Indonesian government is actively implementing strategies to safeguard trade routes and diversify export markets.

Indonesia’s Trade Exposure to the Middle East

As of April 2, 2026, Indonesia’s exports to the Middle East totaled approximately US$9.87 billion . This represents a smaller portion of Indonesia’s overall export portfolio, with the majority of exports flowing to East Asia (36.4%), Southeast Asia (20.8%), North America (11.5%), South Asia (9.6%), and Western Europe (5.7%) . Key commodities exported to the Middle East include palm oil (HS 1511), jewelry (HS 7113), and cars and other motor vehicles (HS 8703) .

Impact of Middle East Tensions

The escalation of conflicts in the Middle East poses risks to global energy prices and international trade logistics costs . However, Indonesia’s direct trade exposure to the conflict-ridden regions is considered relatively limited. Imports from the Middle East, primarily energy commodities like oil, constitute about 3.9% of Indonesia’s total imports .

Government Strategies and Diversification Efforts

Indonesia’s Trade Minister, Budi Santoso, emphasized the government’s vigilance regarding potential impacts on supply chain stability and market demand . The Ministry of Trade is actively working to expand and diversify export markets to reduce reliance on specific regions . Indonesia is also looking to increase crude oil imports from the United States to offset potential supply disruptions from the Middle East .

Challenges for Indonesian Manufacturers

Indonesian manufacturers are facing a “double squeeze” from rising energy costs due to Middle East tensions and a domestic gas crunch . This is leading to reduced output and calls from industry players for the government to prioritize domestic supply and potentially curb exports .

Recent Export Performance

Despite global geopolitical tensions, Indonesia’s export performance remains robust. 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 .

Key Takeaways

• Indonesia’s trade with the Middle East represents approximately 3.49% of its total exports.
• The government is actively monitoring the situation in the Middle East and its potential impact on trade.
• Diversification of export markets is a key strategy to mitigate risks.
• Indonesian manufacturers are facing challenges due to rising energy costs and domestic gas shortages.
• Overall export performance remains positive despite global tensions.