Wednesday, December 03, 2008
There is a falling demand for Indonesia's exports.
Foreigners are cutting their holdings in Indonesian bonds.
The Indonesian rupiah has fallen 24% since the start of September 2008.
Within the next 3 months, the rupiah is expected to fall a further 10% to its lowest level since 1998 as investors sell more of their Indonesian assets, according to Goldman Sachs Group Inc. (Indonesian Rupiah Set to Fall 10% in Three Months, Goldman Says)
Indonesia is South East Asia's largest economy.
It is still expanding.
Goldman Sachs expects it to grow 3% in 2009.
Indonesia is the world’s biggest producer of palm oil and the second-largest maker of rubber.
The central bank raised interest rates this year to 9.5 percent to quell inflation.
The Jakarta Composite Index of stocks has dropped 56% in 2008.