"I think it will have a big impact. And this must be anticipated by the government, especially companies that supply goods and export goods to destination countries in the Middle East region," said Siregar when met here on Monday.
He noted that demand from abroad, especially from Iran and its neighboring countries, would decrease amid the conflict between Iran and Israel.
"I think the demand will decrease. Likewise, our supply to foreign countries will decrease as well. This means that goods that were originally going to be exported will not be exported," he said.
Besides affecting trade transactions with Iran, the impact of the Iran-Israel conflict would also spread to other countries in the region, while the supply of goods from Indonesia to the destination countries could be hampered.
If the problem is not mitigated immediately, he believes it will likely lead to an increase in the number of layoffs.
"If it continues to escalate, I think there will be a possible wave of layoffs due to the cessation of supplies of goods abroad," said Siregar.
"So, international geopolitics does affect our open unemployment rate. We assumed this problem would be limited to Israel, Palestine, Ukraine, and Russia. But in fact, the conflict spread and impacted the Asia and Middle East regions," he said.
United States President Donald Trump previously announced on Saturday (6/21) on Truth Social that US forces had completed attacks on three Iranian nuclear sites, including Fordow, Natanz, and Isfahan.
The US strikes followed Israeli attacks launched since June 13 on various targets in Iran, including nuclear and military sites, which killed several senior commanders, nuclear scientists, and civilians.
Iran responded to the attacks with missile and drone strikes on Israeli territory. As of Saturday (6/21), more than 400 people were killed and more than 3,500 others were injured in Iran, according to data from the Iranian Health Ministry.
Meanwhile, in Israel, authorities reported 24 fatalities.
On Sunday (6/22), the Iranian Parliament approved a proposal to close the Strait of Hormuz to all shipping activities following the United States (US) attack on Iran's nuclear facilities.
Related news: Jakarta Geopolitical Forum to discuss Hormuz closure, energy impact
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Translator: Arnidhya Nur Zhafira, Katriana
Editor: Azis Kurmala
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