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Indonesia's Market Plummets 12% Amid Policy Concerns

2/2/2026

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Story summary
  • Indonesia's equity market fell nearly 12% and lost more than $80 billion in value.
  • Investors link the decline to President Prabowo Subianto's policies, including military spending and a sovereign wealth fund bypassing budget channels.
  • Some fund managers say reforms could improve market investability.
  • Last year, foreign investors sold $6.4 billion in bonds, fueling outflows.