In 2013, the US investment bank Morgan Stanley dubbed Indonesia as one the “fragile five”, a group of emerging economies that it believed were especially vulnerable to a jump in interest rates in the US.
Almost a decade later, US interest rates are rising sharply, which is adding to the economic problems in the developing world. But Indonesia appears unruffled.
At a time when the global economy is being battered by the Ukraine war and the global energy, food and climate crises, Indonesia has emerged as an unlikely outlier, boasting both a booming economy and period of political stability.
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