Of all the things Indonesia's Joko Widodo thought might be preoccupying him 1,085 days into his presidency, credit default swaps and currency forwards probably were not among them.
Two recent news items explain why market gyrations are at the top of his inbox. First, the World Bank listing the rupiah among currencies most at risk as global credit conditions tighten. Second, data suggesting foreign investors are declaring their own warning, dumping more than $2 billion of Indonesian stocks in the third quarter. This exodus tops the previous high in 2013 amid the Federal Reserve "taper tantrum."
