Indonesian economy faces headwinds

Recent losses in Indonesia's stock and currency markets reflect uncertainties over the country's economic prospects this year as concerns over local policies, US tariffs and falling commodity prices weigh on Southeast Asia's biggest economy, analysts say.

The rupiah fell to a record 16,642 against the dollar during early trade on Tuesday, the weakest level for the Indonesian currency since the Asian financial crisis in 1998. It recovered in the afternoon thanks to intervention by the Bank Indonesia, the country's central bank.

Earlier on March 18, a steep sell-off in equities forced the Jakarta Stock Exchange to temporarily halt trading after the benchmark Jakarta Composite Index tumbled 7.1 percent — its biggest intraday slump since September 2011. The index recovered in the afternoon session, but it still closed more than 3 percent lower. The losses were extended in the following week, with the index closing 1.55 percent lower on Monday.