Indonesia’s 10Y sovereign bond yield rose for a fifth consecutive day, while the spread on its five-year credit default swaps reached the highest level since late 2023. Analyst concerns about Indonesia’s financial stability have grown, partly due to a series of initiatives by President Subianto. Goldman Sachs downgraded its stance on the country’s assets. Indonesia posted a budget deficit in the first two months of 2025, largely due to a double-digit drop in state revenues. The newly launched sovereign wealth fund, Danantara, taking over the management of seven state-owned enterprises, has raised investor concerns about increased political influence.