Infobank
INDONESIA’S economy lately has felt feverish, its temperature rising and falling unpredictably. Government officials have been busy reassuring the world: this country remains strong. The Minister of Finance says the state budget is solid, backed by fiscal reserves of Rp420 trillion. The Financial Services Authority (OJK) showcases the results of banking stress tests, claiming national resilience remains robust. Rating agencies are still loyal to Indonesia’s sovereign credit rating. The Governor of Bank Indonesia is highly optimistic about the rupiah.
But we cannot avoid one question: doesn’t this resemble 1997? Weren’t the nation’s top officials back then also busy reassuring the markets and the people, while an economic time bomb kept ticking beneath the grand-looking stage floor?
