Schneider's Business Is Still Safe Amidst The Heating Iran-Israel Conflict

Schneider Electric revealed that the geopolitical conflict between Israel and Iran has not had an impact on the supply of raw materials. President Director of Schneider Electric Indonesia & Timor-Leste, Martin Setiawan stated that the conflict has not affected the company's operations or supply chain to date, "So far there has been no impact on us. Hopefully there will be none," said Martin when met after the inauguration of the expansion of the Schneider Electric factory in Cikarang, on Tuesday (6/24/2025). 

Furthermore, Martin said that the company had anticipated the risk of disruption to the global supply chain by relying on a regional distribution network. 

"Schneider operates with various hubs. We have our own hub in Southeast Asia which is the closest. So there has been no impact yet," he added. In line with Martin, the government through the Ministry of Industry also said that the global situation has not caused significant disruption to the domestic industrial sector. 

Director of the Agricultural Machinery and Machinery Industry at the Ministry of Industry, Solehan, said that although there has been no direct impact, the government remains vigilant. He also highlighted the potential for price increases for certain materials such as non-gas energy sources (NGES) if the conflict continues. "So far there has been no impact but we must also be vigilant because it is related to NGES there, it also needs to go up if there is a long war. But so far there has been none. Hopefully there will be no impact if the ceasefire is faster, hopefully there will be no effect and peace again," he said. Previously, economists assessed that the conflict between Iran and Israel and the involvement of the United States (US) would have an impact on industrial performance globally, including Indonesia, although currently the effect is still limited. Core Executive Director Mohammad Faisal said that the supply chain of goods other than energy from the Persian Gulf region, including the Strait of Hormuz, is relatively insignificant. This is because the largest global trade route currently does not go through the region, but the Red Sea and the Suez Canal. "For raw materials in general, maybe the impact is not too much for now," Faisal told Bisnis, Monday (6/23/2025). According to him, as long as the main trade routes are not disrupted to supply goods other than energy, then business conditions can still run normally. However, he emphasized the importance of vigilance if the conflict spreads to other areas such as Egypt or the Suez Canal. If this condition occurs, then the global supply chain more broadly could be disrupted. "Unless it also reaches wider areas to Egypt for example, to the Suez Canal and others, which could affect the supply chain further," he explained. The war conflict between Iran and Israel which has the potential to spread has also raised concerns among export-import players. Moreover, previously the industry was still worried about the dynamics of previous policies such as trade tariffs during the Trump era. He also did not deny that the conflict would result in a spike in logistics costs, even reaching twice the normal conditions. Although for now there has been no significant impact on logistics due to the war, changes in shipping routes could occur, especially to avoid conflict areas. "It is also possible that there will be changes in routes that may have been close to the Middle East, especially the Persian Gulf, maybe that was avoided," he explained. He emphasized that in general, trade routes such as the Malacca Strait and East Asian waters have not been disrupted so that the global supply chain is still running relatively normally. However, the risk of changes in logistics costs in the future remains. "For now it is still relatively limited, but it does need to be anticipated in the future," he said. 

Tag: Iran Israel Martin Setiawan Schneider Electric