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Economics4h 22m ago

Indonesia's economy is grappling with high energy prices, investor unease over government policies, and a plummeting rupiah, despite the central bank's recent interest rate hikes.

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Jakarta, Indonesia, Southeast Asia

Who
Indonesia's government, President Prabowo Subianto, Deputy Finance Minister Juda Agung, Bank Indonesia, BMI (Fitch Solutions), Capital Economics, MSCI, World Bank, Deni Friawan
What
Indonesia's economy is grappling with high energy prices, investor unease over government policies, and a plummeting rupiah, despite the central bank's recent interest rate hikes.
When
Sun, 14 Jun 2026 03:55:00 GMT · 4h 22m ago
Where
Jakarta, Indonesia, Southeast Asia ·
Why
High energy prices fueled by the Middle East war, government's costly fuel subsidies, a multi-billion-dollar school meal programme, tighter export controls, and increased central bank oversight have unnerved investors, leading to a weak rupiah and stock market performance.
The Frontline Impact

How this affects you

The Indonesian economy is facing significant headwinds, with the rupiah hitting record lows and the stock market losing about a third of its value, which could impact its goal of becoming a rich country by 2045 and potentially lead to further interest rate hikes and a downgrade in market risk status.

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