Indonesia risks

Time for a reality check in Indonesia

Beneath a benign surface, Indonesia's economy is suffering from worsening terms of trade and a deteriorating income account, according to Sean Darby of Jefferies.
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A weaker rupiah could spell trouble for Indonesia, according to Jefferies
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<div style="text-align: left;"> A weaker rupiah could spell trouble for Indonesia, according to Jefferies </div>

There are signs that Indonesia’s ineluctable promotion into the premier league of emerging economies could be derailed. A sudden shift of the current account into deficit, an embrace of capital inflows and a reliance on offshore dollar funding have prompted at least one analyst to warn that the country is increasingly vulnerable to systemic shocks.

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