Investors Sell Indonesian Assets as Prabowo’s Power Grip and Policy Uncertainty Spark Rout

Global investors are losing confidence in Indonesia as stocks slump at the fastest pace in the world and the rupiah sinks to record lows, according to Bloomberg. The selloff has intensified concerns that President Prabowo Subianto is tightening his grip on power, while rumors about a possible change at the finance ministry have added to market anxiety.

According to Bloomberg’s report on the market rout, trading desks have been flooded with “sell Indonesia” calls as investors reassess the country’s political and economic outlook. The country’s equity market has been hit harder than peers, and the currency’s slide has underscored fears that policy uncertainty is feeding capital outflows.

The pressure on markets has also drawn attention to Finance Minister Purbaya Yudhi Sadewa, who denied he is resigning after rumors of his departure spread through slumping markets this week, Bloomberg reported. His denial was aimed at calming speculation that a shift in the finance ministry could further unsettle investors already worried about stability and policy direction.

The wider backdrop is Prabowo’s growing concentration of power, which investors are increasingly reading as a negative signal for governance and economic discipline. Market participants are watching closely for signs of how the administration will balance political control with efforts to reassure foreign investors, support the currency, and stabilize sentiment.

Indonesia matters to global portfolios because it is one of Southeast Asia’s largest economies and a major emerging-market investment destination. When confidence drops this sharply, the effects can spread beyond the stock market into borrowing costs, corporate financing, and the government’s room to maneuver on economic policy.

What happens next will depend in part on whether the government can restore confidence with clearer messaging and policy continuity. For now, the combination of political uncertainty, rumor-driven speculation, and a steep market decline has left investors bracing for more volatility.