4 The cause of Indonesia's Economic Crisis of 1997-1998, What will Repeated in Economic Crisis Now?

Various studies that examine the Asian financial crisis have been carried out, from different angles as well. Generally seen a pattern and characteristics that apply equally across the country were hit by the crisis. However, in terms of its depth and duration, Indonesia can be said to be very unique. It's hard to find the comparison, perhaps the most appropriate country to compare the time it is Russia, and now maybe Argentina. Therefore, in the following descriptions we will examine briefly why the crisis in Indonesia was so severe, and why recovery is so slow.

In introspection, we must admit that the crisis in Indonesia is really unexpected coming, absolutely it was unprecedented. As noted by Furman and Stiglitz (1998), that among the 34 countries with problems are taken as samples (sample) study, Indonesia was the country hardest hit by the crisis are not expected when compared with other countries in the sample, these. When Thailand began showing symptoms of the crisis, people generally believe that Indonesia will not meet the same fate. Indonesian economic fundamentals are strong enough to withstand credible external shock (external shock) due to the fall of the Thai economy.

Here are four causes of Indonesia's Economic Crisis of 1997-1998: