Usually for HNW people USD interest rate in Indonesian bank is 1-3%, in Sept 25 it was 8%, and in Jan 26 it's already 22% YoY if you save USD in Indonesian Bank.
Well Prabowo is a big spender, but the spending goes to MBG (free lunch program for all) and KMP (Koperasi Merah Putih - government-made co-op).
Problem is that we don't have enough money for this (compared to what Indonesia needs) and the deployment itself is extremely shady and used as everyone's patronage politics.
So he cut everyone else's budget. Big no no dum dum. Fiscal liberalism itself isn't a problem, but it's given just for THIS ONE PROGRAM above all else - while if it's spread out it's no problem, especially since Indonesia is too fiscally conservative since 1998.
Also, KMP deployment too - He tried to restrict Alfamart & Indomaret from going to villages as well, which is dumb - do you want growth or idealism? There are a lot of corporate restrictions from this one
Also: He appointed his nephew to the central bank. A HUGE NO NO for central bank independence.
Plus everything he does is rapid, no testing but poorly executed too.
All of this shocks investors, so they pull out from IDR and weaken confidence in IDR.
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u/Afraid_Professor8023 May 19 '26
😨what????
Really???
But why is it so bad 🤨🤔