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Stress-Testing The Indonesia Economic Sectors by Shock on ITS Macroeconomic Variable ( An Analysis of Firm-Wide Probability of Default) Munich, Adrian; Surya, Budhi Arta
The Indonesian Journal of Business Administration Vol 2, No 2 (2013)
Publisher : The Indonesian Journal of Business Administration

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Abstract

Indonesia has kept its two years of living dangerously in 1997-99. During 1997-99’s crisis, Indonesia had the most exceedingly awful impact contrasted with the other countries that encountered the Asian crisis.  The recovering cost, in both cash-worth cost and inarticulate expense, was greatly towering. This accompanying figure was depicting Indonesian real sectors and external sectors from 1994-2004. Several Indonesia’s real sectors and external indicators, since 1997-99’s crisis until present, never fully-recovers to its previous low-rate condition. Economic downturn was authenticated by a decreasing wealth, parallels with the shrinkage of money power, for both buying and paying power. As we know, Indonesian 1997-99’s economic crisis has made the rupiah, Indonesian currency, take its free fall against US Dollar. Thirty years of uninterrupted economic condition of a good country with its predictable economic growth rate in South East Asia, was shocked by its own foreign exchange rate.