Indonesia’s rupiah rebounds but rate rises threaten middle class

Indonesia’s rupiah rallied from a historic low this week, its stock market surged and a closely watched sovereign wealth fund bond offering was oversubscribed, offering Southeast Asia’s largest economy a reprieve after months of asset pressure. But economists have warned that the relief may come at a cost as the same forces helping stabilise the rupiah, including higher interest rates and easing external pressure, could deepen financial strain on the country’s shrinking middl