Why Indonesia’s Sweeping Overhaul Is Spooking Markets

Indonesia's President Prabowo Subianto has initiated a sweeping overhaul of the country's economy, less than a year after taking office in October 2024. The ambitious plans have spooked investors, leading to a plunge in the value of the rupiah to levels not seen since the 1997-1998 Asian financial crisis. The policy changes implemented earlier this year have raised concerns among investors, who are wary of the potential impact on the economy. The government's efforts to reshape Southeast Asia's largest economy have raised questions about the sustainability of the reform agenda and its long-term implications. The article highlights the challenges faced by the new administration in balancing its reform agenda with the need to maintain investor confidence and economic stability. The situation in Indonesia is being closely watched by the global market, as the country's economic performance can have a significant impact on the broader regional and global economic landscape.