Indonesia's weakening rupiah challenges government

Photo: WN / Emico Silalahi

By Karishma Vaswani BBC Indonesia editor

20 April 2015

From the section Business

Indonesia earns more than $10bn a year from its tourism sector

The mood at the Harco electronics department store in central Jakarta is

"We sell in rupiah, but we pay to the dealer in dollars, so that means our costs have effectively gone up by 20 to 25%,"
BBC News 2015-04-20
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Indonesia

Indonesia (Listeni/ˌɪndəˈniË?Ê’É™/ IN-dÉ™-NEE-zhÉ™ or /ˌɪndoÊ?ˈniË?ziÉ™/ IN-doh-NEE-zee-É™), officially the Republic of Indonesia (Indonesian: Republik Indonesia Indonesian pronunciation: [rÉ›pÊ?blɪk ɪndÉ”nÉ›sɪa]), is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 17,508 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an elected legislature and president. The nation's capital city is Jakarta. The country shares land borders with Papua New Guinea, East Timor, and Malaysia. Other neighboring countries include Singapore, Philippines, Australia, and the Indian territory of the Andaman and Nicobar Islands. Indonesia is a founding member of ASEAN and a member of the G-20 major economies. The Indonesian economy is the world's 17th largest economy by nominal GDP.

The Indonesian archipelago has been an important trade region since at least the 7th century, when Srivijaya and then later Majapahit traded with China and India. Local rulers gradually absorbed foreign cultural, religious and political models from the early centuries CE, and Hindu and Buddhist kingdoms flourished. Indonesian history has been influenced by foreign powers drawn to its natural resources. Muslim traders brought Islam, and European powers brought Christianity and fought one another to monopolize trade in the Spice Islands of Maluku during the Age of Discovery. Following three and a half centuries of Dutch colonialism, Indonesia secured its independence after World War II. Indonesia's history has since been turbulent, with challenges posed by natural disasters, corruption, separatism, a democratization process, and periods of rapid economic change.

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