Because of the 1997 lesson, Indonesia reacted fast when its rupiah plunged in late November 2008 in the current bout of the global financial crisis. Jakarta pledged to respect the free movement of capital in an attempt to shore up investor confidence.
Other methods deployed by Jakarta to shore up the declining rupiah include have its state oil regulator insisting on all contractors to use local banks to deposit billions of dollars for energy projects to help the currency starting from 20 November 2008.
Indonesia also followed the Malaysian and Singapore initiative of guaranteeing all foreign currency and local currency bank deposits which in turned followed the initiative of Hong Kong that led to the positive results of money flowing back into Hong Kong.
The Singapore government set aside S$150 billion (US$101.6 billion) in government reserves to back the depositors’ funds. On 12 Oct 2008, Indonesia raised the amount of bank deposits it would guarantee. But some argue that this may not be not enough as the government guarantees only a maximum of two billion rupiah per account.
To manage the crisis, the Indonesian government set up a special Presidentially-appointed team of cabinet ministers in the second week of October 2008 including senior bankers and business leaders such as James Riady and Tommy Winanta to come up with policies to counter the economic crisis.
Antara, "Govt supports jamu industry during crisis" dated 12 December 2008 in the Antara website [downloaded on 13 December 2008], available athttp://www.antara.co.id/en/arc/2008/12/12/govt-supports-jamu-industry-du...
Gale, Bruce, “Two reasons for hope” dated 11 October 2008 in the Straits Times (Singapore: Straits Times), 2008, p. A24.