Investors are growing increasingly anxious about the independence of Bank Indonesia (BI) as President Prabowo Subianto pushes for aggressive economic growth, raising fears of a potential rupiah selloff. The central bank’s unexpected rate cut this week, which caught markets off guard, has intensified concerns that BI may be succumbing to political pressure to stimulate the economy at the expense of currency stability. This move comes amid broader global worries about the erosion of central bank independence, a trend highlighted by recent attacks on the U.S. Federal Reserve by former President Donald Trump. Since taking office last year, Prabowo has championed populist spending plans aimed at boosting Indonesia’s growth rate from 5% to 8%. However, investors fear that these policies could undermine fiscal credibility, worsen the current account deficit, and fuel inflation. The rupiah has already depreciated by 3% this year, making it Asia’s worst-performing currency. Analysts warn that while BI’s rate cuts may support growth, they risk destabilizing the currency, especially given Indonesia’s heavy reliance on imports and foreign capital. The central bank has cut rates by 150 basis points over the past year, with further reductions expected. Market participants are also concerned about a ‘burden-sharing’ agreement between BI and the government, which could expand the bank’s mandate and potentially politicize its operations. Despite Indonesia’s relatively stable macroeconomic indicators, the widening gap between short- and long-term bond yields reflects growing investor unease. Experts emphasize the need for clear communication and policy measures to restore confidence in BI’s independence and Indonesia’s economic management.