Indonesian Stocks, Bonds Drop on Concern Over Budget-Deficit Cap

AI Summary

Indonesian stocks and government bonds declined amid concerns that President Prabowo Subianto's administration may remove the country's long-standing budget deficit ceiling. Investors fear that lifting fiscal guardrails could lead to increased government borrowing and financial instability. The development signals potential political and economic uncertainty in Southeast Asia's largest economy.

Indonesia’s stocks and government bonds fell on concern Prabowo Subianto’s administration is moving closer to removing the long-held deficit ceiling for the state budget.