ECONOMIC ENVIRONMENT IN INDONESIA
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ECONOMIC ENVIRONMENT IN INDONESIA
The Asian Economic Crisis
The currency crisis in Thailand in mid-1997 spurred one of the largest economic crises that Asia has ever experienced. The crisis quickly spread throughout the region of South East Asia. However, the effects of the crisis are not confined to this region. The direct and indirect effects of the crisis spread to other Asian countries as well as to developed economies. Countries with relatively weak economic fundamental and financial systems were affected more severely. The currency crisis in Thailand became what is known of the Asian Economic Crisis of 1997. As a result, many South East Asian countries experienced an abrupt depreciation of domestic currencies. Indonesia was the hardest hit by this economic crisis. This can be seen in Table 1, which gives the currency depreciation against the US dollar for the countries most affected by the crisis.
Table 1...