Indonesia upholds its longstanding policy of no formal diplomatic relations with Israel until a Palestinian state is established, a stance reaffirmed by the Foreign Ministry in February 2026 despite shared involvement in a Gaza reconstruction board. Tensions escalated recently with Jakarta's strong condemnation after an Indonesian UNIFIL peacekeeper died from injuries in a southern Lebanon projectile explosion on March 29, followed by criticism of a Gaza hospital banner incident in April, amid polls showing 75% public opposition to normalization. Under President Prabowo Subianto, informal trade ties have quietly expanded, but no bilateral talks, summits, or diplomatic breakthroughs are scheduled before the June 30 deadline. Structural barriers, including domestic politics in the world's largest Muslim-majority nation and unresolved Palestinian issues, sustain trader skepticism on near-term progress.