Welcome to Rupiah's New Normal, Indonesia Policy Makers Signal
- The currency has tumbled to levels last seen in 1998
- Central bank and the government see decline as manageable
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Indonesian policy makers wrestling with a weaker currency have a message for the market: welcome to the new normal.
As the rupiah languishes near levels last seen in 1998, Indonesian officials are making it clear they see the situation as manageable. Rather than hit the panic button, both the central bank and government maintain Southeast Asia’s biggest economy is on solid ground, and could even benefit from the rout.