[Jakarta Post] Indonesia Boleh

 

Surprisingly, inaction does not bode well for the Republic of Indonesia. Assassinations rise as emotions clash with reason 


It has been more than 9 months since the Indonesian financial crisis has broken out, and without  any action taken by the IMF, the illiquidity that Indonesia has been struggling with has not just remained unresolved, but has actually worsened. Without any capital to repay their loans, Indonesia companies are not just retrenching employees, but are also filing for bankruptcy en masse. 

The IDX Composite has fallen over 53.5% since the start of the crisis, and unemployment has risen to an all-time high at 7.2%. Exports are worsening as global demand has declined drastically following the full-blown global financial crisis, and the trade deficit is worsening Indonesia's already crippling BOP numbers. Protests across Jakarta have only worsened, and rumours of assassinations of authorities in the Ministry of Finance and large banks have only increased with rising pessimistic sentiments against the government and the fall of large financial corporations. Investors are losing hope in the IMF, with its credit rating having dropped to CCC- as of October 1st. 

Will the IMF finally do something, or will Indonesia collapse as a nation?
Location: Jakarta, Indonesia

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