IS Indonesia’s economy really on a sound footing? To listen to official statements, confidence is in ample supply. Finance Minister Purbaya Yudhi Sadewa has gone as far as to say the government declined a loan offer from the International Monetary Fund, arguing that Jakarta still has around US$25 billion in available funds.

Financial markets are not persuaded. It is highly unusual for the IMF to approach a country with an unsolicited lendi