Indonesia

Rescuers face heavy rains, equipment failures in search for two people trapped in central Laos cave by flash floods.

Heavy rains have threatened to delay the search for two people who remain missing in a flooded cave in Laos, after five others were rescued after being trapped underground for more than a week.

Finnish diver Mikko Paasi, one of the first international rescuers to arrive at the site, told The Associated Press news agency that rains on Sunday had filled the cave up to the second chamber, preventing divers from entering until pumps can lower the water level.

A drainage pump also broke, making the situation even more difficult, said fellow diver Yoshitaka Isaji of Japan.

Rescue teams from Laos and neighbouring Thailand have been working together over the past week to rescue the trapped villagers, alongside divers from countries including Finland, Malaysia, Japan, Indonesia, France and Australia.

Seven people entered the cave in a remote mountainous area of central Xaysomboun province last week to look for valuable minerals such as gold, before being trapped by a flash flood that blocked their way out, according to local media reports.

One other person escaped and alerted the authorities.

A Laotian rescue group said on Sunday it had received “substantial” information on the cave system from the five men who were rescued earlier this week. “The hope is that today’s mission will locate both remaining victims,” the group wrote on social media.

The rescued men were being treated at a local hospital and were doing well, Malaysian diver Lee Kian Lie, who is taking part in the operation, told AP.

“We interviewed them about how the deeper part of the cave looks like. We will continue to search based on the information we have, and perhaps we will be able to get to the other two,” he said.

Rescuers said they navigated more than 200m (650 feet) into the cave and discovered five chambers in the system. The five people rescued so far were found in the fifth chamber.

Paasi, the Finnish diver, told AP that the survivors reported a narrow crack in the fifth chamber that could be a passage leading to a deeper part of the cave system.

“This was the only place that we haven’t checked in the mine, where the two lost miners could still be,” he said in a video interview.

The five men who were rescued – identified by their first names as Khamla, Mued, Ee, Ing and Laen – were first found last Wednesday.

The first man was safely extracted on Friday, guided through a narrow flooded passage by an expert diver. The remaining four left the cave on Saturday, after the water receded enough for them to walk out on their own, rescuers said.

Videos posted online on Saturday showed emotional moments as the men emerged one by one from the cave. Some collapsed on the ground at the cave’s entrance, and were hugged by a group of workers who cried with joy.

Later moments showed them lying on stretchers, wrapped in foil blankets and fitted with oxygen masks before being transported out.

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Indonesian President Prabowo Subianto unveiled ambitious economic growth and fiscal deficit targets for 2027 while promising reforms aimed at restoring investor confidence and strengthening state institutions. The announcement comes after months of market concerns over government spending plans, policy uncertainty, and weakening confidence in Southeast Asia’s largest economy.

Government Sets Ambitious Economic Targets

Prabowo outlined a growth target of 5.8 percent to 6.5 percent for next year while aiming to lower the fiscal deficit to between 1.8 percent and 2.4 percent of gross domestic product. The government also expects inflation to remain under control and pledged to improve food security and attract greater investment.

Investor Confidence Faces Pressure

Indonesia has faced growing scrutiny from investors and rating agencies this year. Credit rating outlooks were downgraded due to concerns about policymaking credibility, fiscal discipline, and transparency. Market fears intensified after discussions around possible changes to the country’s long standing fiscal deficit ceiling and rising state spending commitments.

Commodity Control Plan Sparks Market Concerns

Prabowo confirmed plans to establish a new state agency to oversee exports of major commodities including coal, palm oil, and nickel. The government says the move is intended to reduce revenue losses and strengthen national control over natural resources, but investors worry it could disrupt pricing systems and reduce private sector profitability.

Private Sector Role Remains Important

Despite increasing state involvement in strategic sectors, Prabowo stressed that Indonesia still welcomes private companies and small businesses as partners in economic development. He called for cooperation between the government and the private sector to achieve long term prosperity.

Analysis

Indonesia’s latest economic strategy reflects a balancing act between ambitious state led development goals and the need to maintain investor confidence. While the government aims to accelerate growth and strengthen control over key resources, markets remain cautious about rising fiscal risks and unpredictable policy changes.

The proposed commodity export agency could significantly reshape Indonesia’s role in global resource markets because the country is one of the world’s largest exporters of coal and palm oil. However, stronger government intervention may create uncertainty for foreign investors and commodity traders.

At the same time, maintaining fiscal discipline will be critical as Prabowo moves forward with large welfare programmes and economic reforms. The success of his agenda will likely depend on whether the government can reassure markets while delivering growth, stability, and stronger institutional credibility.

With information from Reuters.