Anxiety over the economic crisis in Indonesia has reached a new level of intensity as the value of the country's currency, the rupiah, continues to plummet, amid reports that the International Monetary Fund might suspend further aid.

The rupiah is now worth less than a quarter of its value six months ago, with people scrambling to get rid of any large amounts of the currency they have.

Correspondents say international confidence has been further eroded by speculation that Indonesia may default on some of its debts.

With many Indonesians facing unemployment, higher food prices and other hardship, the armed forces say they are making special preparations to deal with outbreaks of social unrest.

The Indonesian currency has again dropped sharply in value, falling for the first time through the psychologically important barrier of 10,000 rupiah to the dollar.

From the newsroom of the BBC World Service.
 

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