The 3rd President of the Republic of Indonesia, BJ Habibie, passed away at SRPAD Gatot Soebroto at the age of 83 years.
During his leadership, Habibie had to fight hard to overcome the economic crisis. Moreover, the government must run, which was hit by riots in 1998.
On May 22, 1998, the third President of the Republic of Indonesia B.J. Habibie formed a new cabinet called the Development Reform Cabinet which finally rid Indonesia of the economic crisis.
Check out how BJ Habibie took Indonesia’s Economy Out of 1998 Crisis:
Asking for IMF help
The first steps taken by BJ Habibie in overcoming the Indonesian economic crisis was regaining support from the International Monetary Fund (IMF). Furthermore, he also asked and the community of donor countries for economic recovery programs.
The Indonesian economic started growing positively in Quarter I and II of 1999.
Handling monopolistic practices
After recovery, Habibie also tried to create healthy business conditions. To accommodate economic reforms, Law Number 5 of 1999 concerning Prohibition of Monopolistic Practices and Unfair Business Competition has been enacted. Secondly, Law No. 8/1999 concerning Consumer Protection.
Improving bank conditions
The former Chairman of the Indonesian Muslim Intellectual Association (ICMI) involved in helping a number of banks that would go bankrupt due to debt and tight liquidity.
Additionally, BJ Habibie also established the Indonesian Bank Restructuring Agency or IBRA.
Controlling foreign debt
Habibie also contributed to establishing an institution tasked with monitoring and resolving the foreign debt.
In addition, he also started the implementation of economic reforms according to the request of the Internal Monetary Fund or the IMF.
Making the Rupiah strengthen again
BJ Habibie was successfully cutting the rupiah exchange rate, which had surged to Rp 15,000 per US dollar during the crisis to Rp 6,500 per US dollar.
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