Chaos Is Taking a Sabbatical in Indonesia
The new president’s team is making the most of some shocks. Maintaining the discipline is key to financial stability.
Stability comes to Indonesia, for now.
Photographer: Samsul Said/BloombergBad news can be good for Indonesia. A slowdown in economic growth and the prospective hit from US tariffs may be imposing some discipline on President Prabowo Subianto’s government. It’s a welcome change.
The former general is only seven months into his term and some of the toughest decisions probably still lie ahead. Nonetheless, the sense of chaos that characterized the very start of the administration has abated. Markets approve the return of normalcy: The rupiah has gained this quarter after disappointing last year, and a recent bond auction was well received. Offshore investors are warming to the nation’s stock market after seven months of outflows.