Indonesia's Tariff Trauma

Indonesia is facing a deepening economic crisis, evidenced by the Indonesian rupiah plummeting to levels not witnessed since the 2008 Asian financial crisis. This decline reflects broader global economic instability and the impact of geopolitical tensions. The article attributes the crisis to factors like rising US interest rates, a strengthening dollar, and increasing global inflation, all exacerbated by the ongoing war in Ukraine and escalating tensions in the Taiwan Strait. These global pressures are exposing weaknesses in the Indonesian economy, including its reliance on commodity exports and vulnerability to capital flight. The government's response, primarily through intervention in currency markets, has so far proven ineffective in stemming the rupiah's decline. The economic hardship is disproportionately impacting the working class, already struggling with high unemployment and poverty. Rising food and energy prices, driven by global inflation, are further eroding living standards. The government's austerity measures, aimed at controlling the budget deficit, are likely to exacerbate the situation. The article suggests that the current crisis is not merely a cyclical downturn but a manifestation of deeper structural problems within the global capitalist system, requiring fundamental societal changes to address the root causes of economic instability and inequality. find the original article here: https://www.wsws.org/en/articles/2025/04/02/bghi-a02.html