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Jakarta Post

Asian Financial Crisis: Eclecticism is the answer

Jakarta   /   Fri, July 21, 2017   /  09:12 am
Asian Financial Crisis: Eclecticism is the answer Indonesia has been continually registering respectable economic growth. (Shutterstock, Inc./AsiaTravel)

I would like to revisit the Asian Financial Crisis of 1997/1998 on its 20th anniversary, commonly dated July 2. Twenty years ago, the Thai baht plummeted in a single day after its flotation, and what happened afterwards is history. For Indonesia, the crisis turned our economy into a basket case, falling from the prestigious status of being part of “the Asian miracles” as termed by the World Bank in the early 1990s. The contagion triggered by the plunging Thai baht crashed like a tsunami, rapidly striking most other Southeast Asian currencies, including the rupiah, and then on to the Korean won; hence the term, Asian Financial Crisis (AFC). The rupiah melted from around Rp 2,500 to the US dollar in midJuly 1997 to as low as Rp 17,000 after Soeharto resigned in May 1998. I have contributed to enhancing public awareness and understanding about the AFC through lectures a...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.