Indonesia Stocks Crash As Calls For Revolution Add To Political Tensions

by Stefan J. Bos, Worthy News Chief International Correspondent

JAKARTA/KUTA (Worthy News) – Indonesia’s stock market suffered its worst collapse since the 1998 Asian financial crisis on Friday, forcing authorities to temporarily halt trading as calls for a revolution against President Prabowo Subianto and Vice President Gibran Rakabuming Raka circulated on social media.

The benchmark Jakarta Composite Index plunged 11.57 percent, wiping billions of dollars from share values in Southeast Asia’s largest economy and raising fresh questions about investor confidence in the country’s financial system.

Trading on the Indonesia Stock Exchange was suspended for 30 minutes after shares fell 8 percent at the opening. Selling continued after trading resumed, leaving the benchmark index at its lowest closing level since 2020.

The turmoil followed an announcement by global index provider MSCI that it was considering removing Indonesia from its emerging-market indexes because of longstanding concerns about market transparency, corporate governance and ownership structures.

CALLS FOR REVOLUTION

Indonesia’s financial shock came amid wider political tensions, with a message on the social media platform Instagram seen by Worthy News declaring “Revolution — Now or Never” and demanding the overthrow of the Prabowo-Gibran administration.

The Indonesian-language message, “Tumbangkan Rezim Prabowo Gibran,” appeared alongside an image of a large protest crowd and the words “Indonesia Darurat Keadilan,” meaning “Indonesia is facing a justice emergency.”

The post, apparently published two days earlier, had attracted approximately 276,000 likes, 13,500 comments and more than 62,000 reposts when viewed by Worthy News.

Its circulation illustrates the presence of outspoken opposition to the government, although the organizers’ identities, the origin of the protest image and the extent to which the message represents an organized political movement could not immediately be established.

FEARS OF VIOLENCE

There was no evidence that the online revolutionary appeal had triggered Friday’s market collapse, which followed MSCI’s announcement.

The mounting uncertainty has alarmed Indonesians who had hoped the current government would deliver a more prosperous and stable future.

“I am very concerned about the future of my children,” said Victoria, a Christian entrepreneur and church worker. “I hope we will not see a bloody revolution.”

“I chose the president in hopes of a new Indonesia, but unfortunately it’s not becoming a reality,” she told Worthy News. “Greed has no limit for him,” Victoria added, referring to President Prabowo.

BILLIONS AT RISK

Her comments reflected personal fears about the country’s direction as financial turmoil unfolded alongside increasingly confrontational political messages.

MSCI’s proposal threatens Indonesia’s standing among international investors, with estimates suggesting that removing the country from widely followed emerging-market indexes could trigger approximately $19 billion in capital outflows.

UBS bank estimates suggested that the downgrade could lead to roughly $4 billion in withdrawals by passive investment funds and another $15 billion by actively managed funds.

Such a decision could force funds tracking MSCI’s emerging-market indexes to eliminate their Indonesian shareholdings, potentially putting additional pressure on the rupiah and domestic financial markets.

MARKET UNDER PRESSURE

The Indonesian currency weakened to around 18,070 rupiah against the U.S. dollar during Friday’s turmoil, its weakest level since late July, while Indonesian equities have lost nearly 40 percent of their value this year.

MSCI cited opaque shareholding structures, concentrated ownership and suspected coordinated trading practices, saying reforms announced by Indonesian authorities had not yet demonstrated sufficient improvements in market functioning.

The index provider has launched a consultation running until April 30, 2027, with a final decision expected by June 30, 2027. MSCI said it expected to proceed with reclassification unless there was clear evidence of meaningful improvements in market governance and functioning.

The financial crisis adds to the challenges facing Prabowo, whose administration has faced questions over the cost of ambitious social welfare programs, increasing state intervention in the economy and the credibility of economic policymaking.

DEMOCRACY AT RISK

International investors have expressed concerns about Indonesia’s economic direction, while the threat of losing emerging-market status could further damage confidence in the country’s investment climate.

Indonesia’s Financial Services Authority announced sanctions related to trading violations involving three listed companies, including alleged coordinated share-price manipulation and concentrated ownership arrangements. Officials also pledged further efforts to restore investor confidence.

The political uncertainty has prompted warnings from Indonesians who fear that democratic freedoms won after decades of authoritarian rule are being undermined.

“It is truly heartbreaking to witness the democracy that the people fought for over decades being openly trampled upon in broad daylight,” another Indonesian woman said in remarks shared with Worthy News.

MEMORIES OF SUHARTO

“All the nightmares of the New Order era, which we have long treated as lessons in history books to ensure they would never happen again, are now unfolding before our very eyes, day after day.”

“And what makes it even more ironic… all of this is being done with smiles on their faces, and sometimes even while dancing,” the woman added.

Her remarks referred to Indonesia’s New Order period under President Suharto, whose authoritarian government ruled the country from 1966 until 1998, when mass protests and a devastating financial crisis forced him from power.

Friday’s stock market collapse revived memories of that upheaval, when the Asian financial crisis sent the rupiah plunging, devastated businesses and intensified public anger over corruption, inequality and political repression.

LEGACY OF 1998

Suharto resigned in May 1998 after more than three decades in power, opening the way for democratic reforms in the world’s most populous Muslim-majority nation.

Indonesia’s current political and economic circumstances differ substantially from those of 1998, and Friday’s market losses do not establish that a comparable political breakdown is developing.

Yet the combination of financial uncertainty, investor withdrawals and confrontational anti-government messages underscores the challenges facing Prabowo as his administration seeks to maintain economic stability and public confidence.

For Victoria and other Indonesians worried about their families and democratic freedoms, the crisis raises questions that extend beyond stock prices and international investment rankings: whether the country’s leaders can deliver the more prosperous and stable future they promised, without a return to the political violence and authoritarian rule that marked Indonesia’s past.