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News in English (USA) / 01.09.2025 / 10:00

Political Turmoil in Indonesia Triggers Market Instability

Indonesian stocks and the rupiah have experienced significant declines amid ongoing political unrest, including protests and civil disturbances in Jakarta. The central bank has pledged to defend the rupiah through currency interventions as it dips to a one-month low. Analysts describe this unrest as a temporary disruption rather than a structural derailment, although it raises concerns about the attractiveness of Indonesia for foreign investors. The market reacted negatively, with the IDX Composite Index dropping and investor sentiment weakening. Despite the turbulence, government officials maintain that the economy’s fundamentals remain solid.
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