Chairman of the Golkar Party faction in the Indonesian House of Representatives (DPR RI), Muhammad Sarmuji, stated that the decline in global oil prices thanks to the peace agreement between the United States and Iran has provided momentum for the Indonesian government to improve its fiscal condition.
"This is an opportunity that cannot be wasted. The government must act quickly and with measured effort to translate this peace into tangible benefits for the Indonesian people," Sarmuji said in a written statement received.
Sarmuji said market signals had already spoken faster than any calculations. Brent crude prices immediately plummeted nearly 4 percent to US$83.92 per barrel in Monday morning trading, down from Friday's close of US$87.33 per barrel.
He detailed several urgent concrete steps. First, the government needs to implement fiscal reforms by gradually evaluating and adjusting energy subsidies as global oil prices normalize.
The Secretary General of the Golkar Party emphasized that the fiscal space that had been eroded by the increase in fuel subsidies was now open again and must be utilized optimally.
"The budget that was previously allocated to cover the swelling subsidies can be reallocated and focused on strategic and priority sectors, such as infrastructure, education, and social protection, whose benefits are more directly felt by the people," he said.
Second, the easing of geopolitical risk premiums will allow for more efficient oil and gas import costs, which will have a direct impact on lowering domestic production costs and inflationary pressures.
Third, the full opening of the Strait of Hormuz must be utilized immediately to smooth the export-import supply chain that has been disrupted for months, while simultaneously reducing international logistics costs that burden businesses.
Fourth, Indonesia needs to boost non-oil and gas exports to the Middle East and countries affected by conflict, including re-establishing trade agreements with Iran in the agricultural and manufacturing sectors that have been delayed.
Sarmuji welcomed the announcement of a peace agreement between the United States and Iran.
Pakistani Prime Minister Shehbaz Sharif, acting as mediator, announced that both sides had declared an immediate and permanent cessation of military operations on all fronts, including in Lebanon.
The official signing ceremony is scheduled for June 19, 2026, in Switzerland. US President Donald Trump later confirmed this, while Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed that the text of the agreement had been finalized and would be signed on Friday (June 19).
"This is the news that people around the world have been waiting for, all yearning for peace. The Golkar Party faction in the Indonesian House of Representatives welcomes and expresses its highest appreciation for this agreement," said Sarmuji.
Sarmuji emphasized that this agreement was not only a victory for the two warring countries, but also a victory for the multilateral order and the active role of diplomacy by developing countries.
Pakistan, along with Türkiye, Qatar and Saudi Arabia, played a key role as facilitators in this long and tedious negotiation process.
"This proves that the path of diplomacy, even though it is difficult and winding, is always more dignified than war," he stressed.
Peace on paper, Sarmuji stressed, must be immediately translated into real economic recovery.
The US-Iran war has left deep economic wounds, not only for the Middle East region, but for the whole world, including Indonesia.
"We hope this peace agreement will quickly reduce global oil prices, which have been impacted by the escalating conflict and the closure of the Strait of Hormuz. High oil prices burden our state budget through inflated fuel subsidies, suppressing people's purchasing power, and increasing inflationary pressures. Normalizing global energy prices is in the direct interest of the Indonesian people," said Sarmuji.
He added that the knock-on effects of this conflict extend beyond oil prices. Disruptions to global supply chains triggered by the closure of the Strait of Hormuz have driven up international logistics and shipping costs, ultimately impacting consumers and businesses in Indonesia.
