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View all search resultsEconomists interpret the rating agency’s latest assessment as a serious corrective signal, noting that a downgrade in Indonesia’s credit rating could sharply raise borrowing costs and pile pressure on the rupiah.
In what appears to be a coordinated role swap, the President has appointed a former BI deputy governor to fill the deputy finance minister post left vacant by his nephew Tommy Djiwandono, who is set to take up his new job as BI deputy governor.
Indonesia must brace for a global liquidity storm of historic proportions. With the traditional "central bank put" now missing, the nation's survival depends on fortifying its economic ship before the waves of capital flight reach our shores.
As the rupiah stumbles past the 17,000-mark, Indonesia is facing a "vibe check" that no amount of political muscle can ignore. When nepotism shifts from a political exception to a bureaucratic rule, the resulting "Technocratic Sunset" threatens to transform a G20 economy into a fragile family office.
The push to "align" Indonesia’s financial regulators with political objectives marks a fundamental paradigm shift from stability to short-termism. While these moves may sustain growth today, they defer systemic costs to a future where institutional safeguards may no longer exist to catch the fall.