Indonesia’s household consumption, a major contributor to GDP, has been growing at a lacklustre rate in recent years because of weak commodity prices and currency devaluations, the Financial Times reported. The latest economic indicators and FT Confidential Research data show signs of recovery, although the overall outlook remains precarious. This situation is likely to drive pro-growth President Joko “Jokowi” Widodo to support households with subsidies, a populist policy that is incompatible with his fiscal reform agenda as he seeks re-election in April next year.

A steep recent slide in Indonesia’s stock markets and currency is rooted in heavy foreign ownership of the country’s government bonds—something officials here have been trying to change. The Indonesian stock market has slid more than 7% in two weeks, while the rupiah has shed 1.4% since mid-April as global investors have pulled funds from emerging markets. The selloff is partly because of ripple effects from Indonesia’s local-currency bond market, which until recently has been a beneficiary of investors’ yearslong search for yield, The Wall Street Journal reported.

Indonesia will hand over a luxury yacht seized on the resort island of Bali to U.S. authorities, police said Wednesday, giving the Justice Department an elusive asset connected to a $4.5 billion fraud case centered on the Malaysian state fund 1MDB, The Wall Street Journal reported. Daniel Silitonga, Indonesia’s chief police investigator in seizure of the yacht Equanimity, said police would transfer control over the $250 million, 300-foot vessel “in a few days” upon the completion of legal arrangements.

Last year Indonesia’s finance minister, Sri Mulyani Indrawati, invited chief executives, directors and shareholders from the country’s leading industries to banquets at her ministry, The Economist reported. As they munched, she would give presentations setting out who among them had—and, by omission, who had not—signed up to the government’s tax amnesty. “This may be the most expensive dinner in your lifetime,” the 54-year-old economist recalls telling them. Indonesia’s tax amnesty, which began in July 2016, ended on March 31st.

A tax amnesty program launched by Indonesia to bring home money stashed overseas by wealthy individuals has attracted 135.4 trillion rupiah (US$10.5 billion) in asset repatriation since July, the government said Friday, The Wall Street Journal reported. The announcement came at the end of the final day of the most generous terms, as low as 2% penalties, offered to those participating in the tax program, which will continue for six months.

PT Trikomsel Oke, an Indonesian mobile-phone retailer that defaulted on bonds last year, said that a court hearing on the company’s debt workout plan will be held today, Bloomberg News reported. A Jakarta commercial court had decided on Sept. 26 to postpone a deliberation meeting, the firm said in a filing to the Singapore stock exchange. The company said that it obtained approval from creditors based on the majority of votes cast at a meeting held on Sept. 22.

The Indonesian government will no longer bail out commercial banks when they face financial problems, but will instead force the institutions to use their own assets or those belonging to shareholders to raise funds in a crisis, according to a new regulation Parliament passed late last week, The Wall Street Journal reported.

Published data would suggest Indonesian banks are holding up well, in spite of the commodity downturn, a lack of diversification in the economy and protracted currency weakness. But there is good reason to believe such data do not tell the full story. While the true extent of stress is hard to gauge, it is unlikely that medium-sized banks, in particular, will be able to maintain healthy profits for long, according to FT Confidential Research, an FT investment research service.

Concern over external debt in corporate Indonesia is mounting as companies seek to roll over more than $42bn of foreign currency loans within the next 12 months, following a period of steep rupiah depreciation, the Financial Times reported. External debt is a red flag to investors. It added fuel to the Asian financial crisis of 1997-98, as ravaged currencies magnified foreign currency borrowings across swathes of the region. Some Asian currencies, including the Indonesian rupiah, are flirting with the levels hit at that time.

A unit of Indonesian coal miner PT Berau Coal Energy Tbk has filed a petition to have a debt moratorium granted by a Singapore court recognized in the United States, in a move to stave off creditors, Reuters reported. On July 7, the Singapore High Court imposed a moratorium preventing any creditor of Berau Capital Resources Pte Ltd from enforcing its rights against Berau Capital, its parent company or the guarantors of Berau Capital's $450 million bond. The moratorium, which lasts until Jan. 4, effectively bought time for Berau to negotiate with bondholders.