Despite the more recent weakening of the currency associated with the rumors on China’s devaluation, the Brazilian devaluation, and some scattered domestic problems, the rupiah has shown its resilience, signifying the improved confidence on Indonesian economic performance and prospects. From mid-October 1998, the rupiah has moved upward and downward within a range of only around 13%.
Indeed, the bank restructuring program, the details and the implementation of which were announced about a week ago, was the latest piece of economic recovery program that contributed to the improved confidence. Now, let me turn to the macroeconomic indicators. GDP suffered a sharp decline in the aftermath of the fall in the rupiah’s value.