The decline is the biggest since 1998, shaking Southeast Asia’s largest economy and raising concerns that foreign investors will leave the stock market. According to Bloomberg, a definitive decision to downgrade would put the Indonesian stock market in the same category as its counterparts in Lebanon and Argentina.
Authorities in the country introduced a series of reforms in April to avoid the risk of a downgrade, with a final decision expected in June 2027. So far this year, the stock market has lost around 39 percent.
