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Despite the high inflation of the period, the exchange rate, which had essentially been preserved using the country's oil exports, was maintained at 415 rupiah until 15 November 1978.
The investor confidence in Indonesia was shaken, and due to previous deregulations, much of the Indonesian stock market was owned by foreign investors.
The continued overvaluation of the rupiah meant that Indonesia was beginning to suffer a trade deficit, as well as falling foreign exchange reserves.