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WURRY AGUS PARLUTEN (WAP):
Asian Financial Crisis in Indonesia?
ARTIFICIAL INTELLIGENCE (AI):
The Indonesian rupiah lost more than 80% of its value against the US dollar, causing widespread financial instability. The government responded by implementing austerity measures and seeking assistance from the International Monetary Fund (IMF), which provided a bailout package in exchange FOR Â REFORMS aimed at stabilizing the economy. The crisis had a significant impact on the Indonesian economy and society, leading to a decline in living standards for many people.
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WAP:
How many factors lead Indonesia "1998 financial instability"?
AI:
Several factors contributed to the financial instability in Indonesia in 1998:
(1) High levels of foreign debt: Indonesia had accumulated large amounts of foreign debt, which made it vulnerable to a sudden withdrawal of foreign capital,
(2) Currency devaluation: The Indonesian rupiah was devalued in 1997, which led to a sharp increase in the cost of imports and a decline in the competitiveness of Indonesian exports,
(3) Lack of government transparency: There was a lack of transparency in the Indonesian GOVERNMENT'S FINANCIAL MANAGEMENT, which made it difficult for investors to assess the country's economic situation,
(4) Political uncertainty: The political situation in Indonesia was unstable, with frequent changes in government and a lack of clear policy direction,
