Inflation Could Spike Due to the Impact of War, Potential Interest Rates Rise

Jakarta, CNBC Indonesia - The Middle East war, which resulted in the closure of the Strait of Hormuz, has reportedly led to a surge in energy prices, from oil and gas to coal, according to Farash Farich, Chief Investment Officer of BNI Asset Management.
The rise in energy prices is feared to push up prices and increase inflation, which will impact the economy and the state budget, reducing the prospects for interest rate cuts by the US central bank,                                the Fed, and Bank Indonesia, and even potentially increasing interest rates.

This situation has certainly caught the attention of market players, causing investors to be cautious when investing in global financial markets, including Indonesia.

How do market players view the impact of the war on inflation, interest rates, and the Indonesian financial market? For more information, watch Andi Shalini's dialogue with BNI Asset Management Chief Investment Officer, Farash Farich, on CNBC Indonesia's Power Lunch (Tuesday, March 31, 2026).