In Southeast Asia's only trillion-dollar economy, a 28-year-old IT graduate now works as a motorbike ride-hailing driver earning about $220 a month, while the middle class has shrunk roughly 19% from its peak and youth unemployment sits near 17%. After MSCI warned it could drop the market from its reference indexes, Indonesian stocks fell more than 11% on October 16, their steepest one-day drop since the 1998 Asian financial crisis, and slid nearly 4% more on October 19. High oil prices, rising U.S. interest rates and costly subsidies, such as free meals for over 80 million students at an estimated $30 billion a year, are adding pressure on the rupiah and the budget. Ferry Latuhihin, former chief economist at International Indonesia Bank, calls the situation a 'time bomb', while former trade minister Thomas Lembong warns the country is getting ever closer to the brink. Phillip Wool of Rayliant says the risk is concentrated in Indonesia.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: 'Quả bom hẹn giờ' tại nền kinh tế nghìn tỷ USD duy nhất ở Đông Nam Á: Chứng khoán thê thảm, nhà đầu tư tháo chạy, thanh niên thất nghiệp đi làm xe ôm, cựu bộ trưởng cảnh báo kinh tế đang sát bờ vực
Related tickers and likely impact
VNINDEX
▼ Likely negativeRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/20/2026 | 1,691.97 |
| Change that session | +0.13% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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