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Capital Flees Indonesia amid Market Jitters

Monday, September 29, 2025

Prabowo doubles down on populist spending. The rupiah is under pressure as the market jitters.

arsip tempo : 176864643888.

Illustration. TEMPO/Alvin Siregar. tempo : 176864643888.

A TORRENT of capital is rushing out of Indonesia, exerting relentless downward pressure on the rupiah. The latest round of the rupiah sell-off began in late August, when Finance Minister Sri Mulyani Indrawati was replaced, and has accelerated following last week’s passage of the 2026 State Budget.

The newly approved budget lays bare the country’s mounting fiscal woes. The government’s financial position will deteriorate sh

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