As with the rest of the ASEAN region, the short and medium term prospects of the Indonesian economy will be affected by the currency crisis and its related wider impact. The market has reacted positively to the news of the IMF package, with the rupiah strengthening as much 10 percent in the first two days after the announcement. However, the full implications are yet to be felt and the rupiah has continued to weaken and the stock market index to drop. While the situation will stabilize in the medium term, it is still difficult to predict when confidence will be fully restored and capital will reflow back, so that the short term economic outlook of the Indonesian economy remains uncertain

Tentunya yang menarik banyak perhatian adalah menguatnya rupiah terhadap dolar sejak awal Oktober dari Rp. 10.000 sampai dengan Rp. 7.100. Bahkan rupiah pada hari Selasa lalu sempat mencapai Rp. 7.050 atau 8.5% lebih tinggi dari hari sebelumnya dan telah mengalami apresiasi sebesar 50% dibandingkan dengan bulan Juni. Pihak Bank Indonesia bahkan yakin dapat ditekan dibawah Rp. 7.000 Mari kita pelajari faktor-faktor dibelakang menguatnya rupiah dan dampaknya, supaya kita bisa menilai apakah nilai rupiah dapat dipertahankan pada tingkat tersebut.