Indonesia: Israeli-Palestinian War Triggers a Surge in World Oil Prices
The President of the Republic of Indonesia, Joko Widodo (Jokowi) said that the world is increasingly unclear, especially triggered by the explosion of the Israeli-Palestinian war which has the potential to raise world oil prices to US$150 per barrel.
CNN Indonesia reported that the President of the Republic of Indonesia, Jokowi, said at the BNI Investor Daily Summit 2023 in Plataran GBK City Forest, Central Jakarta, Tuesday (24/10/2023) that he said, "The world today is increasingly unclear. The challenges we face are also not decreasing ", but it is increasing... And the war, one of which is Ukraine, it is not yet clear when it will end, the second Hamas-Israel war is emerging,". Jokowi is worried that the Israeli-Palestinian war will spread to other countries, starting from Lebanon, Syria and Iran.
Moreover, these countries are oil producers. If these oil producing countries join the war, Jokowi said oil prices would definitely skyrocket. "I checked yesterday that the Brent price was still US$89 per barrel, but if it spreads as I said, we don't understand. It could reach US$150 per barrel. This is what we have to be wary of, everyone is careful, both from the monetary and fiscal side," Jokowi warned. The Indonesian Ministry of Energy and Mineral Resources (ESDM) previously encouraged pertalite restrictions to be implemented immediately in the midst of the Israel-Hamas war.
This was done to prevent crude oil imports from swelling. Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that the current war in the Middle East has not had a major impact on world oil prices. However, if the war lasts a long time, Indonesia's oil and fuel imports will of course be affected.
CNN
