The rupiah was floated on the International Currency Market on the 15th August, 1997.
During the ensuing six months the rupiah continued to rapidly lose ground against the US$ bottoming at above the Rp. 17,000 to the $ mark. At the time of floating it was approximately RP. 2300 to the dollar.
Intervention by the World Bank and the IMF did not make much difference to the economic scenario. There were runs on the main banks in the country and the rupiah was weak and variable. Stocks were barely trading. Gold was strong.
With the viability of the banking sector under threat some exporters and importers were in difficulty because LC's issued by Indonesian banks are not being accepted overseas. If you are in this position you may like to look at our Business Pages on Export/Import.
With the support of the government and the establishment of IBRA, the banking sector has now recovered and business is prospering. Foreign investment is still down but the climate is good for investment.
The rupiah has been stable at around about Rp.8.400 to th US$ for the period of Megawati's presidency.