Indonesia faces economic instability and market volatility

Indonesia is experiencing significant economic tension, with some economists describing the current situation as a delicate moment not seen since 1998. The country's stock market recently suffered its largest single-day drop since the Asian financial crisis, falling over 11% following warnings from MSCI regarding the potential removal of Indonesia from its global benchmark indices.

Economic challenges include rising inflation, fuel shortages in various cities, and the impact of international geopolitical tensions and trade tariffs. While some analysts point to macroeconomic stability and a GDP growth of 5.29% in the second quarter of 2026 as signs of resilience under the Prabowo-Gibran administration, others highlight growing domestic discontent. This discontent is reflected in a tightening job market, where university graduates are increasingly forced into low-wage gig economy roles, such as ride-hailing drivers, to survive.