What caused the 1998 crisis in Indonesia?
After 30 years in power, Indonesian President Suharto was forced to step down on 21 May 1998 in the wake of widespread rioting that followed sharp price increases caused by a drastic devaluation of the rupiah.
How did Indonesia Overcome Financial Crisis 1997?
As the government of Indonesia was unable to cope with this crisis it decided to seek financial assistance from the International Monetary Fund (IMF) in October 1997. The IMF arrived in Indonesia with a bailout package totaling USD $43 billion to restore market confidence in the Indonesian rupiah.
Is the Indonesian rupiah the weakest currency in the world?
The Indonesian rupiah is the fourth weakest circulating currency in the world as of May 2021, with one United States Dollar equaling Rp14,196.- A long-running proposal to redenominate the rupiah has yet to receive formal legislative consideration.
What caused the Indonesian rupiah to fall in 1997?
The rapid fall in the rupiah, beginning in July-August 1997, soon revealed the underlying weakness of the Indonesian financial sector. Panic selling of rupiah for dollars by Indonesian companies with dollar-denominated debt showed that private foreign debt was far higher than previously thought.
Does the Indonesian rupiah (Rp) have a decimal separator?
However, financial reports and bank statements do record monetary amounts in sen (e.g. Rp1.234,56 – Indonesian uses comma as decimal separator). The rupiah (Rp) is the official currency of Indonesia. Issued and controlled by Bank Indonesia, the ISO 4217 currency code for the Indonesian rupiah is IDR.
How to stabilize the Indonesian rupiah?
In a nutshell, to stabilize the rupiah and stop inflation in its tracks, I proposed, and Suharto accepted, a currency board system for Indonesia. This would have made the rupiah a clone of the greenback.