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Indonesian Entrepreneurs' Strategies to Face the Impact of Geopolitical Conflict

Nabilah Muhamad 27/04/2026 18:26 WIB

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According to a survey by Kadin Indonesia, operational cost efficiency has become the main measure taken by business operators to anticipate the impact of geopolitical conflicts.

The Steps Taken by Business Operators in Indonesia to Anticipate the Impact of Geopolitical Conflicts (March-April 2026)

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The Steps Taken by Business Operators in Indonesia to Anticipate the Impact of Geopolitical Conflicts (March-April 2026)

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The Indonesian Chamber of Commerce and Industry (Kadin) surveyed business owners about the steps they are taking to anticipate the impact of geopolitical conflicts, such as the US-Israel versus Iran war.

As a result, 33.9% of the responding business owners are implementing operational cost efficiency measures.

"Operational cost efficiency has become a key step, indicating that business operators are more focused on maintaining margins by reducing production, distribution, and operational costs amid rising prices and global uncertainties," said Kadin Indonesia in its Business Pulse Q1 2026 report.

Amid these conditions, some business operators are diversifying trading partners (9.9%), reviewing business contracts and supply chains (9.5%), and diversifying raw material/supply sources (7.1%).

Others choose to shift their focus to domestic demand (6.4%) and engage in asset/currency hedging (3.9%).

However, 29.3% of respondents have not taken any specific steps to anticipate the impact of geopolitical conflicts.

"Some business operators tend to wait and see, either due to limited adaptation capacity or uncertainty in determining the right strategy," said Kadin Indonesia.

The survey involved 210 Kadin members spread across 27 Indonesian provinces, selected using random sampling. The survey was conducted online from March 17 to April 5, 2026.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesian Entrepreneurs' Strategies to Face the Impact of Geopolitical Conflict

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