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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.
Story chain
3 events in this thread- Economics4h 22m agoIndonesia's economy is struggling to win back investors due to high energy prices, government policies unnerving investors, and a plummeting rupiah, despite recent interest rate hikes.Open article
- Currently Reading4h 22m agoIndonesia'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.
- Economics4h 22m agoIndonesia's economy faces challenges due to high energy prices and government policies unnerving investors, leading to currency depreciation and stock market losses.Open article