Updated
Updated · Bloomberg · Jun 5
Indonesia Stocks Plunge 36% as Rupiah Hits Record Low Under Prabowo Policies
Updated
Updated · Bloomberg · Jun 5

Indonesia Stocks Plunge 36% as Rupiah Hits Record Low Under Prabowo Policies

3 articles · Updated · Bloomberg · Jun 5

Summary

  • Indonesia’s benchmark stock index has fallen 36% in just five months after reaching a record high, making it the world’s worst performer this year among more than 90 Bloomberg-tracked gauges.
  • The rupiah has weakened more than 7% to all-time lows as global investors rapidly lose confidence in President Prabowo’s policy direction.
  • Foreign investors have also pulled billions of dollars from Indonesian bonds, extending the selloff beyond equities and currency markets.
  • The slide points to a broad retreat from Indonesian assets, underscoring how quickly sentiment has turned against one of Southeast Asia’s largest markets.

Insights

Can Indonesia's reforms stop a multi-billion dollar exodus if it's downgraded to a 'Frontier Market'?
Is the central bank's defense of the rupiah trading a currency crisis for a domestic recession?
Is President Prabowo's 'hostile takeover' policy sacrificing the economy for resource control?