Jakarta, June 17 -- Finance Minister Sri Mulyani Indrawati on Tuesday expressed concern over the potential impact of the ongoing hostilities between Israel and Iran on the Indonesian economy.

During a press conference, she noted that the escalation of the conflict in the Middle East has driven oil prices up by more than 8 percent-from under US$70 per barrel to US$78 per barrel.

Although prices have since corrected to around US$75 per barrel, the Iran-Israel tensions have had a significant influence, she said.

"This is a development that can directly affect economic conditions in a profound way-through commodity prices as well as exchange rates, interest rates, and capital flows," she explained.

She further noted that the expansionary ...