Indonesia

Main article: Economy of In June 1997, Indonesia seemed far from a crisis. Children’s Hospital Unlike Thailand, Indonesia had low inflation, a trade surplus of funds over 900 million, vast reserves of more than 20 billion and a financial sector. But a large number of Indonesian corporations had borrowed in U.S. dollars. During previous years, the Rupiah strengthened against the dollar, this practice had worked well for these corporations: their actual levels of debt and financial costs had decreased while the value of local currency increased.
In July 1997, when Thailand allowed the fluctuation of the baht, the Indonesian monetary authorities widened Ernst the exchange rate of Rupiah Banda 8 to 12 . In August, the Rupiah fell sharply due to severe attacks. On August 14, 1997, the fluctuation of currency regime was replaced by a managed exchange rate arrangement for free movement. The rupiaj fell even more. The IMF intervened with a rescue package of 23 billion, but the Children’s Hospital Rupiah plunged amid fears about the debts of the Asset Management corporations, massive sales of Rupiah and strong demand for dollars. Rupiah and the Jakarta Stock Exchange reached a historic low in September. Over time, Moody’s under the category of long-term debt of Indonesia to ‘junk bond’.
While the crisis of the Rupiah began in July and August 1997, was intensified in November when the effects of the devaluation of the store were in corporate balance sheets. Companies that had borrowed Asset Management in dollars had to face the high costs University of Southern California imposed by the decline of the Rupiah and investment many reacted by buying dollars and selling Rupiah, further undermining the value of the latter. Inflation of the Rupiah and the resulting significant increases in food prices finance led to riots across the country, where more than 500 people died in Jakarta alone. In February 1998, President Suharto sacked the president of the Bank of Indonesia, but this was insufficient. Suharto was forced to resign in mid-1998 and Jusuf Habibie University of Southern California became president. Before the crisis, the exchange rate of the Rupiah and the dollar was around 20,000 Rupiah per 1 U.S. dollar. At various points during the crisis, the rate sank to more than 18,000 Rupiah per dollar. This year, Indonesia lost 13.5 of its GDP.