The Indonesian currency is falling out of control with no end in sight. It's worth less than a quarter of its value six months ago.

Currency traders say anyone holding large amounts of rupiah is now trying to convert them to dollars as quickly as possible in case of further drops in value. The collapse of the currency has begun to affect Indonesians across the social spectrum.

There are no established bankruptcy procedures, but hundreds of businesses, overwhelmed by their dollar debts and a drop in orders, are reported to have closed down. The authorities say at least two million people have already lost their jobs.

The officially sanctioned trade union predicts that the total of unemployed workers will reach 10 million this year. Pawnbrokers in Jakarta say the number of customers seeking emergency loans has gone up sharply, and some shops are now reporting a sudden increase in business, as middle-class Indonesians rush to spend their money before it loses more of its value.

The greatest immediate concern for the authorities is the rapid rise in food prices, which is hurting poorer Indonesians. The armed forces says it is making special preparations to deal with outbreaks of social unrest.

But there's still no sign of any concerted action by the government to try to tackle the economic crisis. Some analysts believe President Suharto is no longer capable of making the tough decisions needed to restore confidence.

One leading Indonesian economist described the situation as a disaster.