Indonesia's currency has fallen to historic lows against the US dollar, breaching 18,000 rupiah per $US1 and remaining there since June, worse than levels during the 1998 Asian financial crisis. The rupiah has lost ground steadily since September 2024, when it traded around 15,000 per dollar, passing the psychological threshold of 17,000 in April.

"The damage in most of the economy is quite severe," economist Dipo Satria Ramli told ABC News. "Everyone is quite affected." The central bank has raised interest rates four times in quick succession, and the sudden resignation of its governor before the end of his term has deepened concerns.

Tempeh makers, whose soybean imports from the US have become far more expensive, are among the hardest hit. Ahmad Saikhu, secretary-general of a 4,000-member producers association, said the sector was in "total disarray". "If this keeps going on, our family finances will become total chaos," he said. "Within three to six months, a lot of businesses could go bankrupt, leading to widespread unemployment." Street food vendors have raised prices or cut portion sizes to cover rising production costs, Tim Swanston reports for ABC business (AU).