Fears of Prabowo’s path for Indonesia loom after stock rout


JAKARTA: One of the biggest selloffs in Indonesia since the Asian Financial Crisis in 1998 is deepening worries among investors about where President Prabowo Subianto (pic) is taking South-East Asia’s biggest economy.

A warning by MSCI Inc this week about Indonesia’s investability triggered the two-day rout. While the benchmark Jakarta Composite Index pared losses on Jan 29 after regulators pledged measures to address the index compiler’s concerns, fund managers including Aberdeen Investments and Valverde Investment Partners are expecting things to get worse for the nation’s equities.

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Indonesia , selloffs , Prabowo , MSCI , financial , crisis , stock , rout

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