The Impacts of Economics Crisis in Indonesia
The economic crisis, which hit Indonesia, began in Thailand in June 1997. It rapidly spread, causing stocks to tumble and many Asian currencies to fall, the worst of all the Indonesian Rupiah. Indonesia s worsening economic situation is mainly due to the sharp depreciation of Rupiah against the US dollar. Being out of our government s control, the Rupiah keeps on sliding further and at its lowest point touched a level of Rp. 17,000 against the US dollar. Realizing that the economy will not recover overnight, it takes time and serious effort to bring back the economy on the right track. In order to cover the budget deficit, the Indonesian government asked the assistance from the International Monetary Fund. As for the revival of the economic crisis, Indonesia needs massive aid.
The crisis has caused the banking sector to collapse dramatically. The large number of banks in my country might be one of the main problems as there are more than 265 units. The recent economic crisis has put more burdens on the banking sector so the government decided to close down 16 ailing private banks without a full guarantee on the return of their deposit funds. This has forced depositors to draw their savings and moved to foreign and government banks which resulted in a big rush for several private banks. Due to this, The Central Bank has to print new money for injection and bailing out the insolvent banks caused by the rush. By printing money, the government unintentionally prompted the outbreak of hyperinflation. Panicked by this, the Central Bank decided to raise interest rates.
As a result, companies that were highly dependent on loans are forced to close down. Many Indonesian factories are facing financial difficulties due to the huge and extensive overseas debts and a tremendous dependence on importing raw material and supplies. We know that most factories have been too dependent on imports and their owners much too attracted to foreign capital without hedging. They are facing problems with loan repayment due to the drastic depreciation of the Rupiah. Even medium and small enterprises are facing the same problem. They have difficulty in running their businesses since they could not afford to pay the high interest rate. Meanwhile, the economy continues to deteriorate with the annual inflation rate once rising more than 100%. A lot of factories are closing down and the number of unemployed people increase.
The increasing numbers of companies that went bankrupt and the factories, which are closing down, have intensified the quantity of jobless people and unemployment. To anticipate the long crisis, most companies have to restructure their management systems. It is important in the crisis era for companies to achieve efficiency and stick to market oriented operation. For efficiency, companies cannot avoid but reducing the operation cost and working hours. This resulted in the huge number of lay-off and cutting down number of employees. According to prediction, this crisis has caused at least 20 million people to become jobless, 20% of the school children are at serious risk of dropping out of school as a result of shrinking family incomes, soaring unemployment, and hyperinflation. Along with the severe drought, which threatened to push as many as 50 million people into poverty, increasing unemployment, hunger and poverty has also been created.
This serious problem has incited crime, chaos, and social unrest. Poor people can no longer afford to buy staple food and basic essential commodities. Even subsidies could no longer assist with the people becoming more easily tempted and incited to commit crime. Stealing, robbing, looting, destroying, and burning could no longer be avoided. The tragedy was on May 14, 1998, when the mass riots started in Jakarta. The angry mobs started to loot, destroy and burn down shops, supermarkets, cars, housing complexes and even the Chinese minority became the target by being physically assaulted and abused. The reason is because most Chinese dominate the business factor. Direct losses are approximately US$ 909 million. This resulted in a stagnation of the business, transportation and distribution sector since most Chinese have fled the country.
This mid-May riot has left a traumatic effect on me. I am deeply grieved that these things should happen to my own country and people. Motivated by this tragedy, I promise that I will contribute with my knowledge to help my country in difficult time like now. My strong commitment is to try to minimize the impact of the economic crisis.
Другие работы по теме:
Kate Chopin 2 Essay Research Paper Adam
Kate Chopin 2 Essay, Research Paper Adam Smith, Thomas Malthus, and David Ricardo are classical economists whose discoveries in the late eighteenth and early nineteenth century made a great impact on economics to this day.
Cuban Missile Crisis Essay Research Paper Ever
Cuban Missile Crisis Essay, Research Paper Ever since the Soviet Union defeated the United States in the Cold War by launching ?Sputnik? into orbit first, they thought that they had the ?upper-hand?. Soviet intelligence therefore thought they had superior intercontinental missiles. They would soon find out that they were evenly matched by the United States.
Health Care Economics Essay Research Paper People
Health Care Economics Essay, Research Paper People place various levels of price on their lives and the lives of their loved ones. People take drastic measures in an attempt to increase and improve one’s life. Unfortunately, money and economics have a great influence on the value of life. As presented in the text, the Jones-Lee Approach, the relationship between wages and risk, and the study with the smoke detectors, all show that even with health, as with material consumer products, people will purchase more when the price is cheaper.
BioTechnology Essay Research Paper The shortterm future
Bio-Technology Essay, Research Paper The short-term future of biotechnology in production agriculture looks bleak. The unattractive truth is that economics, not science can play a larger role in the future of biotechnology.
Impact Of Technology Essay Research Paper We
Impact Of Technology Essay, Research Paper We live in 21th century which century of develop, everyday, we hear and see many many new products. Some of them was made by a bad purpose, however, the futture will be better than today with impact of technology for serveral reasons.First of all, in future robots will instead of people to do monotonous, hard and risk work.
My Music Teachers And There Positive Influence
On Me Essay, Research Paper Were supposed to do an essay on a person who has had a positive impact on our lives but that is a big list of people. So I decided on 3 people who have all had a contribution on my life.
Econpric Essay Research Paper Economics Essay
Econpric Essay, Research Paper Economics Essay> Q. Why do prices of some goods fluctuate more than others?A. It is a well known fact, that various prices of goodsfluctuate at various levels. The products which fluctuate most inprice are often held to be necessities, but what is that makesthese changes, and which factors influence them.
Economics Of Sex Essay Research Paper This
Economics Of Sex Essay, Research Paper This mini-paper is to study how people of different moral standard choose their one-night-stand partners. At a late stage of this paper, I will state the limitations of this theory.
Up My Ghan Essay Research Paper protection
Up My Ghan Essay, Research Paper protection because the total revenue did not exceed the variable costs that was incurred in the barial of people that wish to be baried in their cementary. Article #1 Date: November 2, 1999
Economics Scarcity Choice Essay Research Paper Economics
Economics, Scarcity, Choice Essay, Research Paper Economics, Scarcity, and Choice Economics: is the study of choice under conditions of scarcity Scarcity: a situation in which the amount of something available is insufficient to satisfy the desire for it.
Global Crisis Essay Research Paper In times
Global Crisis Essay, Research Paper In times of global crisis, is it reasonable to expect that nation-states will put aside rivalries and join together to deal with the crisis?
The Philosophes Essay Research Paper The PhilosophesThe
The Philosophes Essay, Research Paper The Philosophes The Age of Enlightenment was the result of the actions that had taken place by intellectuals who gave new thought to the ideas of politics, economics, religion, and the
Italian Fascism Essay Research Paper FASCISMFascism was
Italian Fascism Essay, Research Paper FASCISM Fascism was a reaction against social and political changes broght about by World War I and the spread of socialism and communism. It developed in Italy and spread to other European countrys after 1919.
French Revolution Essay Research Paper The French
French Revolution Essay, Research Paper The French Revolution began on 1789. It is the most darkest period of France s history, blended with confusion and chaos which many innocent victims were killed or
Paul A Samuelson Essay Research Paper Paul
Paul A. Samuelson Essay, Research Paper Paul A. Samuelson Paul Samuelson was born in Gary, Indiana in 1915. He was not the best of students; in fact, he made no impact at all until he got to college. Although he was an underachiever in high school, Samuelson became one of the greatest economists of the twentieth century.
Freedom And Rights Essay Research Paper Freedom
Freedom And Rights Essay, Research Paper Freedom and Rights How would you feel if your individual rights and freedoms were stripped from you during a national crisis? In many countries, the people s individual rights and freedoms are supposed to be protected by the government. But, in some cases, those individual rights and freedoms were taken away from the people during a national crisis.
Australian History Essay Research Paper With the
Australian History Essay, Research Paper With the merging of big players within and between such industries as insurance, business services, banking & finance, media and technology I propose to investigate the impact and feasability of a higher degree of vertical intergration in the form of mergers, acquisitions, convergence, complimentary shareholdings and alliances.
What Is Economics Essay Research Paper Many
What Is Economics? Essay, Research Paper Many people think that economics is about money. Well, to some extent this true. Economics has a lot to do with money: with how much money people are paid; how much they spend: what it costs to buy various items; how much money firms earn; how much money there is in total in the economy.
Freud Essay Research Paper Freud
Freud Essay, Research Paper Freud’s Personality Theory The development of gender roles in deifferent forms of feminsm gives us a revealing overview of Freud’s personality theory. It is relatively
Iran Essay Research Paper 1Politics Power and
Iran Essay, Research Paper Politics, Power, and U.S. Policy in Iran, 1950-1953 1 by Francis J. Gavin On 19 August 1953, elements of the Iranian army, acting on orders from the Shah and
Buddhist Economics Essay Research Paper Buddhist EconomicsMost
Buddhist Economics Essay, Research Paper Buddhist Economics Most people think that religion and economics don?t mix. So you would think the same in the case with Buddhism and economics. But actually the there is a set of rules that go along with our modern day economics that have their own meanings. Buddhists believe that spiritual health and well being go hand in hand.
Impact Of Economics And Science During The
19Th Century Essay, Research Paper Steve Dohl 3/13/01 Pre IB His/Geo The impact of Economics and Science during the 19th Century In the period from c. 1850-1914 economics and science were changing the world and lifestyles. Adam Smith introduced the idea of capitalism and gave the idea that mercantilism is bad (‘lessie faire’).
Study On Judges Essay Research Paper Study
Study On Judges Essay, Research Paper Study on Judges: 1. What are the major findings with regards to the impact of race in each area of study? Finding on this studies have been a major impact on Judges due to minority judges have been well looked at through the eyes of the world. Progress has been made in appointing minorities to the federal bench and nearly three out of four minorities are confirmed.
SupplySide Economics Essay Research Paper SupplySide EconomicsEssay
Supply-Side Economics Essay, Research Paper Supply-Side Economics Essay Question Supply-Side economics and policies would best benefit the economy in the case of a recession in the year 2000. Supply-side policies are made of several important points to regulate the economy. Supply-side policies consist of stimulating the economy by production, cutting taxes, and limiting government regulations to increase incentives for businesses and individuals.
Rise Of Sociology Essay Research Paper The
Rise Of Sociology Essay, Research Paper The Rise of Sociology The field of sociology evolved as a response to the impact of profound social and political fragmentation experienced in the West. A fundamental shift in both social and intellectual patterns created by the economic evolution of the eighteenth century led to great concern among scholars of the period.
The Graduate Essay Research Paper In the
The Graduate Essay, Research Paper In the movie The Graduate, the main character Ben returns home from college and encounters a psychological crisis in the sense that he doesn t know who he is or what he wants. This is due in large part to his smothering parents. Though it may seem like he is a free man and entitled to do as he wished, it is much the contrary.
Political Crisis Essay Research Paper American political
Political Crisis Essay, Research Paper American political cartoons often follow the general displeasure of the government by the American people. They run the gamut from economics to foreign policy to the overwhelming popular topic of bureaucracy.
Asian Crisis Essay Research Paper The continuing
Asian Crisis Essay, Research Paper The continuing Asian economic crisis that began in mid-1997 ranks as Asia’s second biggest event since World War II. The crisis suddenly halted the region’s unprecedented three decades of rapid economic growth.
Identity Crisis Essay Research Paper Identity Crisis
Identity Crisis Essay, Research Paper Identity Crisis: The Teenage midlife crisis By Erica C. Bowman There are many issues that face today?s teenagers. Probably one of the most common is the issue of individualism or identity. The teenage years harbor some of the most confusing and impressionable years in the life of any human being.