Global market uncertainty rose again in early 2026 after the escalation of conflict involving Iran, Israel, and the United States disrupted major global energy routes. As the global economic outlook becomes increasingly unpredictable, many businesses have started to look for more focused investment strategies in Indonesia.
There are clear reasons behind this shift. While several countries are facing economic pressure and supply chain disruptions, Indonesia is showing signs of resilience. Its industrial sector remains strong, and its commodity potential continues to attract global investors.
As widely reported, the military attacks that began in late February expanded tensions across the Middle East. The situation raised concerns about the safety of energy trade routes such as the Strait of Hormuz, one of the most vital oil shipping lanes in the world.
The tension quickly triggered volatility across energy markets, industrial metals, and global supply chains. When energy and commodity prices become unstable, investors tend to search for markets with stronger economic foundations and more stable growth potential. In this context, investment strategies in Indonesia are becoming increasingly relevant, especially due to the combination of a strong domestic manufacturing sector and opportunities created by global commodity market dynamics.
For foreign investors, expatriates, and international business players, understanding these shifts in the economic landscape is crucial for identifying new opportunities emerging in Southeast Asia, particularly in Indonesia.
Investment Strategies in Indonesia Through the Manufacturing Sector
One of the key factors strengthening investment strategies in Indonesia today is the performance of the manufacturing sector, which continues to show strong expansion. Finance Minister Purbaya Yudhi Sadewa revealed that the global manufacturing index has reached 51.9, marking the highest level in the past 44 months.
Indonesia’s figure is even higher. The country’s manufacturing index stands at 53.8 and remains firmly in expansion territory. This level surpasses several major economies such as China, the United States, and Australia.
Purbaya stated, “Kita hanya kalah dibandingkan dengan Indonesia. Jadi kondisi ekonomi Indonesia dari sisi supply amat kuat.”
He added that this situation sends a positive signal for the national economy. The manufacturing sector has the potential to remain a key engine of Indonesia’s economic growth, especially with support from strong domestic demand.
For international investors, this development shows that Indonesia maintains a solid production base despite global uncertainty. When the manufacturing sector expands, the impact often spreads to other industries, including logistics, industrial technology, and supporting business services.
However, the government remains cautious about several risks that could affect this momentum, including potential global supply chain disruptions and rising input costs driven by inflationary pressures.
Investment Strategies in Indonesia Amid Global Energy Market Turbulence
The conflict in the Middle East has raised concerns about global energy supply stability. Tensions involving Iran, Israel, and the United States increase the risk of disruptions along major energy trade routes such as the Strait of Hormuz, which is a critical pathway for global oil shipments (Al Jazeera).
As tensions intensify, global energy and commodity prices become more volatile. This situation encourages investors to look for sectors and markets that can remain resilient during uncertain conditions.
In the energy sector, the European gas market is currently in a vulnerable position. European Union gas reserves are reported to be below 30 percent, the lowest level since the 2022 energy crisis. At the same time, reliance on imported gas remains relatively high.
Beyond energy, industrial metal markets are also experiencing pressure due to production and distribution disruptions. Aluminum, for example, is a critical metal used in industries ranging from automotive manufacturing to construction and food packaging.
When one of the world’s largest aluminum producers halted shipments with an output of around 1.6 million tons per year, global supply immediately entered a deficit. Operational disruptions at other producers in the Gulf region further worsened the situation.
Read also: Finance Minister Warns Middle East Conflict May Affect Indonesia Economy
As a result, aluminum prices on the London Metal Exchange surged to their highest level since 2022, reaching approximately US$3,446 per ton.
In situations like this, investment strategies in Indonesia often become more attractive. The country has a strong industrial base, abundant natural resources, and a large domestic market. This combination provides a buffer against external shocks occurring in global markets.
Investment Strategies in Indonesia Through Commodity Diversification and Safe Haven Assets
In addition to energy and industrial metals, geopolitical uncertainty also increases investor interest in safe haven assets. Gold once again becomes a primary choice when market volatility rises.
After experiencing a temporary decline, buying activity during the price dip pushed gold prices upward again. This phenomenon shows that global investors still view precious metals as a reliable store of value during periods of geopolitical uncertainty.
Meanwhile, the energy crisis is also beginning to affect the agricultural sector. Several fertilizer producers in South Asia have reportedly reduced production due to limited supplies of liquefied natural gas. Rising costs for fertilizer raw materials such as ammonia and sulfur could eventually push global food commodity prices higher.
These developments show how volatility in energy markets can spread across other sectors within the global economic chain. As a result, modern investment strategies increasingly emphasize the importance of asset diversification and a deeper understanding of connections between different economic sectors.
For investors considering business expansion or investment in Indonesia, this situation creates new opportunities. Countries with strong industrial bases, large commodity resources, and broad domestic markets tend to be more resilient against global shocks.
Leveraging Investment Opportunities in Indonesia With the Right Support
Rising global volatility is prompting many investors to reconsider markets with long-term growth potential such as Indonesia. The strength of the manufacturing sector, the country’s commodity potential, and stable domestic demand all contribute to this growing appeal.
However, for expatriates, foreign investors, and international companies, entering the Indonesian market requires a clear understanding of business regulations, corporate structures, and administrative compliance obligations.
Bizindo is here to assist international investors who want to establish and grow their businesses in Indonesia more easily and efficiently. Bizindo’s services include company establishment, business licensing, tax compliance, accounting and payroll services, as well as other business administrative support.
With the right support, global business players can implement investment strategies in Indonesia in a more structured way, seize economic growth opportunities, and ensure that their business operations comply with applicable regulations. Contact us today at www.bizindo.com
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