War, weak rupiah and wary investors put pressure on Indonesia’s economy (opens original article in a new tab)

Indonesia's economy faces pressure from high energy prices, weak rupiah, and investor concerns over government policies, prompting central bank rate hikes but experts warn more challenges remain.

• Indonesia's rupiah has dropped to record lows due to high energy prices and investor concerns over government policies
• The central bank raised interest rates by 75 basis points, but experts say more rate hikes may be needed
• Government policies including fuel subsidies and export controls are criticized as populist and deterring foreign investment
• The World Bank predicts Indonesia's growth will be below target due to high public spending and economic pressures
• Investor confidence remains low, with the stock market losing a third of its value this year