News Summary

• Investors increasingly see Indonesia as a market where policy uncertainty, political intervention and execution risks are beginning to outweigh one of the developing world’s most compelling long-term growth stories.
• Investors are “concerned about the direction of policymaking in Indonesia,” Jason Tuvey, deputy chief emerging markets economist of Capital Economics.
• Rising oil prices driven by the conflict in the Middle East are also adding to pressure on Indonesia”s economy, forcing the government to spend more on fuel subsidies.