Indonesia is fighting to save its financial reputation after a disastrous two days saw stock prices plunge by 8 per cent. Authorities are racing to pass new rules to prevent a downgrade that has already scared investors into pulling billions of dollars out of the local market. Foreign capital has flowed out of Indonesia because of concerns about how President Prabowo Subianto is widening the fiscal deficit and ramping up the state’s involvement in financial markets. AdvertisementThe appointment of his ⁠nephew, Thomas Djiwandono, to the central bank this month, after last year’s abrupt sacking of respected Finance Minister Sri Mulyani Indrawati, has shaken confidence in his fiscal stewardship and pushed the rupiah to record lows. Ignoring interference concerns, Indonesia on Tuesday appointed Thomas Djiwandono, President Prabowo’s nephew, to the central bank board, sparking fears of a loss of independence.