The credibility of policymaking in Indonesia has been dealt a fresh blow at the start of 2026. It will take time for the more pernicious effects of populist and interventionist policies under President Prabowo to be felt, but risk premia are likely to rise and the country’s long-term economic prospects are worsening.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services