Overview

• The rupiah is trading at 16,585 per US dollar, close to its lowest level since the 1998 Asian financial crisis.
• Bank Indonesia has intervened in currency, bond, and forward markets to manage the decline and maintain market stability.
• Investor confidence has been shaken by concerns over fiscal policies, including increased government spending and the cancellation of a tax hike.
• Foreign investors have withdrawn over $2 billion from Indonesia's stock market this year, contributing to the rupiah's depreciation.
• Officials assert that Indonesia's economic fundamentals remain strong, citing 5% growth, low inflation, and manageable foreign debt.