The Indonesian rupiah has weakened significantly throughout 2025, reaching 16,640 against the U.S. dollar on Tuesday—its lowest level since the Asian Financial Crisis of 1998.
According to Bank Indonesia’s Jakarta Interbank Spot Dollar Rate, the currency closed at 16,622, marking a 0.37% decline from the previous day and making it one of the worst-performing emerging market currencies this year.
In response, Indonesian financial authorities have taken steps to stabilize the economy, including market interventions and efforts to restore investor confidence, as concerns over the rupiah’s decline continue to impact stocks and sovereign funds.
Despite these challenges, officials argue that the current situation differs from the 1998 crisis, as Indonesia’s economy remains more resilient, with stronger financial regulations and a more diversified economic structure.
