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.