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Economics5h 40m ago

Indonesia'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.

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Jakarta, Indonesia

Who
President Prabowo Subianto, Deputy Finance Minister Juda Agung, BMI (Fitch Solutions unit), Capital Economics, World Bank, Deni Friawan, MSCI
What
Indonesia'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.
When
Sun, 14 Jun 2026 03:55:00 GMT · 5h 40m ago
Where
Jakarta, Indonesia ·
Why
High energy prices due to the Middle East war, costly fuel subsidies, and critical government policies like tighter export controls and increased central bank oversight are unnerving investors.
The Frontline Impact

How this affects you

The Indonesian rupiah has plummeted, and the stock market has lost about a third of its value since the start of 2026, leading to investor concerns about the economy's stability and growth prospects. Further interest rate hikes are expected, which could strain the government's budget deficit and potentially hinder economic growth.

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