
Indonesia’s 10-year government bond yield rose to 7.7%, its highest level in four years, while the five-year credit default swap climbed above 100 from around 80–90 in previous months. The rupiah also weakened toward 18,200 per US dollar, reflecting a simultaneous reassessment of Indonesian risk by investors.
The combination of higher sovereign risk premiums and a weaker currency can increase financing costs and pressure import costs, including for feed inputs. The article describes broad macro-financial risk rather than a direct change in agricultural supply or demand.
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