THE recent strength of the rupiah has not lasted long. Following the interest rate cut by the Federal Reserve last month, the rupiah rallied and approached Rp15,000 per United States dollar—reaching its highest level since July 2023. However, it has since reverted back, with trades occurring at approximately Rp15,700 last week.

This depreciation is hardly a welcome start for Indonesia’s new president, Prabowo Subianto. Market sentime