Biggest Stock Crash Since 1998 Exposes Indonesia’s Fault Lines
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Troubled times: Prabowo Subianto, Indonesia's leader, is presiding over a plunge in the nation’s stocks and currency.
Photographer: Samsul Said/BloombergFormer general Prabowo Subianto came to power in Indonesia in October 2024 with the ambitious goal of turning the sprawling nation of 287 million people into the world’s fastest growing economy. Fast forward 15 months and investor confidence in Indonesia’s outlook has rarely been so weak.
The stock market is enduring its worst rout since 1998 after index compiler MSCI Inc. warned about transparency issues in the nation’s equities. The currency is trading near a record low on concern that Prabowo will dig an ever deeper fiscal hole funding measures to boost economic growth. Foreign investors have been dumping the nation’s bonds, with overseas holdings tumbling to the lowest in nearly two decades last year.