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flag Indonesia’s economy faces instability in early 2026, with growth below 5%, fiscal risks, and a failed fertilizer project raising governance and environmental concerns.

flag Indonesia’s economy in early 2026 faces mounting instability, with growth projected below 5 percent, declining state revenues, and rising fiscal risks. flag The rupiah is under pressure due to tighter foreign exchange controls, while investor shifts from government bonds to corporate stocks threaten long-term financing. flag A looming balance-of-payments crisis and high credit downgrade risk underscore the urgency for policy reforms. flag Meanwhile, the Fakfak Fertilizer Industrial Zone project in Papua was deemed unfeasible after a Supreme Audit Agency audit revealed potential state losses of Rp2.96 trillion. flag The relocation to Tomage raises environmental concerns, including peatland destruction. flag President Prabowo’s administration faces scrutiny over governance, military expansion plans, and delayed disaster declarations despite severe flooding. flag Independent journalism remains vital amid political and economic challenges.

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