Asian Financial Crisis (1997-1998)
The Thai baht collapsed in July 1997, triggering a regional currency crisis. Indonesia's rupiah fell from about 2,400 per dollar to above 16,000, as Bank Indonesia burned reserves defending it before turning to the International Monetary Fund for a bailout package.
The rupiah collapse fueled hyperinflation, wiped out dollar-denominated wealth, and contributed to the fall of President Suharto in May 1998.
Indonesia shifted to a more flexible exchange-rate regime and built larger reserves, but the crisis became the standard reference point for severe currency stress in the country.
The October 2026 two-day stock-market rout was steeper than anything recorded in that crisis, showing how extreme sentiment toward Indonesian assets has turned in just a few days.