As the Russian military invades Ukraine, Indonesia can expect little direct impact on its economy and capital market. Either Russia or Ukraine contribute < 1% of total investments last year. Paulus Jimmy, an equity research analyst, said that for now, there is indeed a rise in oil prices, but it has been offset by a hike in the coal price.
According to Coordinating Minister for Economic Affairs Airlangga Hartarto, the impact of the conflict between the two countries that was most felt in Indonesia was the increase in the prices of various commodities. The increase in palm and crude oil will disrupt the energy supply chain throughout the world. For Indonesia, the price increase will have an effect because there is still oil and gas imported from Russia. Then, the increase in prices or supply for wheat and cereals previously supplied by Ukraine.