Indonesia raises rates and fuel prices to stem rout
Bank Indonesia delivered a surprise off-cycle interest rate hike of 25 basis points with government support to address a deepening crisis of investor confidence. Authorities also raised fuel prices by 32 percent and paused liquidity injections as the administration shifts its focus from growth to economic stability.
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Indonesia raised interest rates by 25 basis points and increased fuel prices 32% to stabilize the rupiah and domestic stock markets. The off-cycle policy shift follows weeks of investor concern regarding President Prabowo Subianto's expansive $20 billion social spending programs. The measures signal a transition from pro-growth populism toward fiscal stability to restore policy credibility.
