Indonesia at 80: The Way Forward Amid a High Interest Rate World

Abstract

In President Prabowo’s first ten months in office, much has been achieved, though much remains to be improved. A nation that progresses is, at its core, a nation that continues to learn — and today Indonesia is striving to embody exactly that: a nation of constant learners. In this follow-up, we extend the same theme but shift the lens toward market and investor responses to President Prabowo’s presidency. Drawing on data from October 20, 2024, to August 15, 2025, we examine equities, bonds, the rupiah, and foreign direct investment, benchmarked against the EUR/USD exchange rate and the U.S. 10-year Treasury yield. The evidence points to a clear conclusion: despite global headwinds — particularly the defining storm of persistently high interest rates — Indonesia has maintained its appeal. While global investors have turned risk-averse, Indonesia continues to stand out as a credible and resilient destination across asset classes.

Scroll to Top