The more unstable a country is, the more its currency will depreciate. And Indonesia seems to be feeling the exact impact on its currency, the Indonesian Rupiah (IDR).

The rupiah fell 1 percent to 10,230/U.S. dollar immediately after the bomb blast at two Jakarta hotels which killed 9 people. It is really a regretful incident as the Indonesia has just went through an election that resounding gives President Susilo Bambang Yudhoyono a strong mandate, with hopes that this will quicken reforms in Southeast Asia’s largest economy and stabilising the Indonesian Rupiah. https://rupiah138.xn--6frz82g/

Since the Bali incident, Indonesia has not seen a major bomb blast for several years. Compared to the last incident in Bali, the Indonesian people are better prepared this time round, with a faster reaction in terms of media handling, treating of the injured and the moving on factor – people adopting their daily routine as usual.

As such, while the bomb blast incident is a short term dent to the Indonesian Rupiah, Indonesia’s economic fundamentals are still considered strong. Unlike Singapore which has seen a shrinkage in growth, Indonesia is still able to grow their economy at roughly 3.5% despite the economic/financial crisis and this long term trend may yet continue.

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