Indonesia's SMEs hit hard by rupiah's slump

The Indonesian currency has tumbled to a 20-year low in recent months, prompting a mix of cheers and fears. The Straits Times' Indonesia bureau takes a close look at the impact of the rupiah's slide.

The Indonesian government has taken steps to avert further weakening of the rupiah, including delaying infrastructure projects that are heavily reliant on imported materials.
The Indonesian government has taken steps to avert further weakening of the rupiah, including delaying infrastructure projects that are heavily reliant on imported materials.PHOTO: BLOOMBERG

Small business owners in Indonesia are feeling the pinch of a depreciating rupiah, which has lost about 9 per cent against the US dollar this year, making it the second-worst performing Asian currency.

It has hit its lowest level against the US dollar since the Asian financial crisis two decades ago.

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A version of this article appeared in the print edition of The Straits Times on October 02, 2018, with the headline 'Indonesia's SMEs hit hard by rupiah's slump'. Subscribe