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View all search resultsWhen war comes for the economy
A war economy is not necessarily the mobilization of force, but conflict used as a lever on prices and supply chains.
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Vessels wait in the Strait of Hormuz, as seen from Musandam, Oman, on Aug. 3, 2026. (Reuters/Stringer)
W
hen President Prabowo Subianto told members of the Chamber of Commerce and Industry last week that Iran already possessed nuclear weapons, his remarks were quickly cut from the official recording.
They should not have needed to be.
The claim was unsubstantiated. The International Atomic Energy Agency has found no indication of a coordinated Iranian nuclear weapons program, and two of the country's most respected foreign policy analysts said so within hours.
The Foreign Ministry's clarification was more careful: the President, it said, was warning about the proliferation risk that flows from a destabilized Middle East, not confirming Iran's nuclear status. Indonesia consistently opposes nuclear proliferation and supports the Treaty on the Non-Proliferation of Nuclear Weapons.
All is well, except for Prabowo's performance.
If Indonesia's president is making unverified nuclear claims to a domestic business audience during the most consequential energy crisis of the decade, the country's strategic thinking has not kept pace with the conflict.
And that matters, because what is happening in the Strait of Hormuz is not merely a war. It is a new form of economic warfare, and Indonesia is not a bystander.
