A coup of the government is underway, no longer merely an attack as some market observers argued. It is judged by government’s unwillingness to deal with (implement) strategic policies resulted in the damaged public law and order and tumbling confidence.
“TSM”
Market sentiment has been hammered by investors dumping highly-valued conglomerate stocks, careless government spending and weak governance, outweighed by negative foreign propaganda since February 2026. While the government knows the root causes of the problems, it is so far unwilling to fix them. If this condition persists, market confidence will only get worse.
Indonesia market and business elites are heavily dictated by west mainstream opinions. Uninterrupted bad campaigns with the help of local alliances easily dump stock prices. The impact of the coup has been far-reaching, so structural, systematic and massive [known as TSM]. Some of you may not feel it, but my experiences in the market help me detect something more serious is probably ticking.
Indecent call
I have a feeling that they are calling for a new leader. Socialism and nationalism are against their will. So, someone who is being a prison of his past and hence in urgent need of power is perfectly matched their choice as the new one. Indonesia is prone to fall into category among corrupt countries which leaders are willing to sell out their countries for power and money, likw Argentine, Ekuador, and the Philippines.
https://www.youtube.com/shorts/AhZ8OAmdz-s?t=33&feature=share
Make or break
If there is no “radical change” made by Prabowo by year end, people discontent will resume. Not only the vice president (VP) but the president himself is incompetent. There is a 35% probability that a power transfer will happen in 2027, which means markets will only get worse by uncertainties. This change means a major break is a must in the ministerial level, possible impeachment of the VP. New alliances and approaches have to be made. Or else, losses of confidence will break out, public outrage will provoke a new demand – a new presidential election next year.
by Djoko Santoso Soenoe
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