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Indonesia’s fiscal crisis in plain sight

On Monday morning, the rupiah plunged to the psychologically critical level of 17,000 per United States dollar. At the same time, global crude oil prices surged uncontrollably to around US$113 per barrel, far above the Indonesia Crude Price assumption embedded in the state budget. For a country that has already become a net oil importer, this combination poses a potentially existential threat to the health of Indonesia’s fiscal balance. [...]