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Currency is the Indonesian Rupiah Exchange rate is approximately 1US 8000 rupiah GDP is approximately 960 billion dollars GDP growth rate is four percent GDP per capita based on purchasing power parity is 4600 Natural resources include petroleum tin natural gas nickel timber bauxite copper coal gold and silver Industries include petroleum and natural gas textiles mining cement chemical fertilizers plywood rubber foodstuffs and tourism Agricultural products include rice cassava tapioca peanuts rubber cocoa coffee palm oil copra poultry beef pork and eggs Major exports are textilesgarments wood products electronics and footwear Major imports are manufactures raw materials foodstuffs and fuels Economyoverview The collapse of the rupiah in late 1997 and early 1998 caused GDP to contract by an estimated 137 in 1998 because of Indonesian firms reliance on short-term dollar-denominated debt and high levels of nonperforming loans in the banking sector The Indonesian Government initially wavered on meeting the conditions it agreed to in exchange for a 42 billion IMF assistance package contributing to further loss in investor confidence and outflows of capital Riots that in many cases targeted ethnic Chinese business owners also set back chances that Indonesia would quickly stabilize its financial crisis and contributed to President SOEHARTOs resignation on 21 May 1998 His successor BJ HABIBIE improved cooperation with the IMF The money supplywhich expanded rapidly early in the year to prop up banks hit by deposit runswas tightened within a few months and by October inflationwhich reached a 77 annual ratewas significantly dampened The government also announced a bank recapitalization program in late 1998 but by early 1999 the plan faced growing challenges over its reliance on public funds Doubts about whether the program is adequate underlie forecasts of continuedalthough much less severeGDP contraction for 1999 Signs of spreading unrest and sectarian violence and concern that social instability will increase as the 7 June 1999 national election approaches also contribute to pessimism about the economy particularly because foreign
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