JakartaPost-Nov 4
The illegal wiretapping scandal targeting President Prabowo Subianto, government officials and business leaders is deepening investor jitters, adding to pressure on an administration already struggling to contain market turmoil and restore investor confidence. The newly exposed case has put businesses on alert over the risk of corporate secrets, investment strategies and transactions being exposed, threatening to erode trust in the country’s investment climate, business groups warn. “Businesses need secure information, confidential communications and legal certainty to maintain investor confidence,” Erwin Aksa, deputy chair of the Indonesian Chamber of Commerce and Industry (Kadin) and a Golkar Party lawmaker, told The Jakarta Post on Wednesday. Political uncertainty must not spill over into economic uncertainty, he emphasized, adding that the government’s handling of the case would be critical to preserving investor confidence. He therefore urged authorities to investigate the allegations transparently and based on evidence. The probe is a fresh blow to President Prabowo, whose administration is already facing public discontent over its economic policies while struggling to restore investor confidence amid record stock market selloffs, a weakening rupiah and the threat of a downgrade by index provider MSCI. Harry Su, research managing director at local brokerage Samuel Sekuritas Indonesia, told the Post on Wednesday that rising domestic political risks, including concerns surrounding the wiretapping scandal, were adding to market jitters, alongside expectations of weaker third-quarter economic growth. Domestic concerns had been weighing more heavily on Indonesian stock market than external pressures, as uncertainty over MSCI’s upcoming index review, foreign selling and rising risk perceptions undermine market sentiment, said Mirae Sekuritas chief economist Rully Arya Wisnubroto. Indonesia’s stock market has become the world’s worst performing this year, having lost more than 40 percent of its value. In a separate news conference on Wednesday, Coordinating Law, Human Rights, Immigration and Correctional Services Minister Yusril Ihza Mahendra said there was, for now, no indication of treason. “As to what material was tapped and for what purpose the wiretapping was carried out, that is still part of the investigation, which remains at an early stage,” he said. Read more at:
https://www.thejakartapost.com/business/2026/11/04/wiretapping-scandal-adds-to-market-jitters-threatens-investor-confidence?utm_source=(direct)&utm_medium=home_latest.
