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Prabowo Fury on Market Rout Shows Growing Divisions in Indonesia

Faris Mokhtar, Bernadette Toh, Harry Suhartono
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⚡ Quantum Brief
Indonesian President Prabowo Subianto fired top financial regulators in February 2026 after ignoring prior warnings about market risks tied to MSCI’s concerns over governance. The dismissals followed a late-January stock market crash that triggered an emergency cabinet meeting at Prabowo’s Bogor residence, where officials clashed over accountability. Sources reveal the president’s fury stemmed from regulators’ failure to address structural weaknesses despite repeated alerts, exacerbating investor panic and capital flight. The purge highlights deepening divisions within Prabowo’s administration, as economic instability clashes with his nationalist policies and resistance to foreign market oversight. Analysts warn the fallout may deter foreign investment, further pressuring Indonesia’s already volatile financial markets and complicating recovery efforts.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Indonesia’s president ordered the firings of regulators after warnings about MSCI’s concerns went unheeded.Indonesian President Prabowo Subianto during an annual meeting of Bank Indonesia in November.Photographer: Bay Ismoyo/AFP/Getty ImagesAs Indonesia’s stock market plummeted in late January, President Prabowo Subianto was furious.Key cabinet ministers huddled at his rural hillside home in Bogor, an hour’s drive from Jakarta. The meeting quickly turned into a blame game, according to people familiar with the matter, who requested anonymity for fear of reprisals.

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