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Jakarta Post

US-Iran row exposes another threat to the Indonesian economy

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Wed, January 8, 2020   /  02:40 pm
The Jakarta Post Image
Iranian mourners gather around a vehicle carrying the coffin of slain top general Qasem Soleimani during the final stage of funeral processions, in his hometown Kerman on January 7, 2020. (AFP/Atta Kenare)

The heightened tension between the United States and Iran after a US air strike killed influential Iranian general Qasem Soleimani last week will add to the global economic uncertainties, which could further affect Indonesia’s exports, analysts have said. BNI Sekuritas head of research Damhuri Nasution said the escalation of the tension between the US and Iran could potentially affect Indonesia’s economy as a result of rising oil prices and foreign outflows. “About 30 percent of the world’s oil supply goes through the Hormuz Strait in Iran,” he explained during a discussion on the market outlook in Jakarta on Monday. “If the tension further escalates between the two countries and Iran decides to close off the strait, it will hinder the global oil supply and catapult oil prices this year.” Should the row between the world’s top...