Indonesia’s rupiah rout is not just about the dollar

The Indonesian rupiah's dramatic depreciation in 2026, nearing a critical 18,000 threshold against the US dollar, has raised alarms reminiscent of the 1997 Asian financial crisis. This isn't just about the dollar's strength but reflects broader economic challenges and political instability within Indonesia. Such currency weakness could trigger higher inflation and import costs, severely impacting the nation’s economic stability and public sentiment. This situation underscores the interconnectedness of global markets and their influence on regional economies.