Full Breakdown
Indonesian President Prabowo Subianto Faces Market Turmoil Amid Rising Approval Ratings
2/10/2026, 10:19:47 PM
Approval Ratings and Market Conditions
Indonesian President Prabowo Subianto's approval rating surged to nearly 80% in January 2026, according to a survey conducted by Indikator from January 15 to 21, which polled 1,220 participants. This increase from 78% in November 2025 reflects strong support, particularly among Gen Z and rural populations. However, this rise in approval coincided with significant market turmoil, as Indonesia experienced its largest market selloff since the 1998 Asian Financial Crisis. The benchmark stock index faced a severe downturn following a warning from MSCI about potential downgrades to frontier market status due to liquidity and transparency issues.
Government Response and Reforms
In response to the market crisis, the Indonesian government announced a series of reforms aimed at stabilizing the financial environment. These included increasing free-float minimums and addressing concerns about market manipulation, which had been highlighted by MSCI's abrupt decision to halt adjustments to Indonesian stocks. Five government officials resigned amid the fallout, indicating the seriousness of the situation. Hashim Djojohadikusumo, Prabowo's brother, acknowledged the government's communication challenges but emphasized the need for a strong narrative to explain its actions.
International Engagement and Security Initiatives
On the international front, President Prabowo has been actively engaging with global leaders. He is scheduled to visit the United States on February 19, 2026, to attend a meeting regarding President Donald Trump's Board of Peace, with hopes of signing a trade deal. Additionally, Indonesia has committed to contributing troops to the International Stabilization Force (ISF) in Gaza, marking a significant step in its foreign policy under Prabowo's administration.
In a related development, Indonesia and Australia signed a security treaty aimed at enhancing military cooperation. This agreement includes provisions for joint military training and reflects Indonesia's cautious approach to foreign policy, particularly in relation to China. Prabowo described the treaty as a commitment to regional stability and cooperation.
Criticism and Opposition
Despite the high approval ratings, there are rising concerns regarding governance and transparency under Prabowo's leadership. Critics have pointed to the centralization of power and the increasing role of the military in government affairs as potential threats to democratic processes. The administration's handling of media relations has also faced scrutiny, with claims of diminishing press freedoms.
Conflicting Reports and Gaps
There are discrepancies in the reporting of the market's performance and the government's response. While some sources highlight the severity of the selloff and the government's immediate actions, others suggest that the administration's narrative has not been effectively communicated to the public. The full impact of the reforms and international engagements remains to be seen.
Verbatim Quotes
- “it’s good, it’s good” — Hashim Djojohadikusumo, on the market turmoil.
- “We believe that this agreement will be one of the important pillars for stability and cooperation in our region,” — Prabowo Subianto, on the security treaty with Australia.
- “reduced predictability in policymaking” — Moody’s Ratings, regarding Indonesia’s credit outlook.
