Analysts say the rupiah slump is no cause for concern as it is mainly due to the strength of the US dollar against every currency in the world.

Amid a rising US dollar and a trade war that started early this year, emerging markets have seen their currencies tumble.

From 2016 to January this year, the rupiah had been quite stable, averaging around 13,400 to 13,600 to the US dollar, said UOB Indonesia economist Enrico Tanuwidjaja.

But in recent months, the rupiah has fallen to a two-decade low – stoking fears among some of a new financial crisis.

Dr Alexander Raymond Arifianto, an Indonesia expert at the S. Rajaratnam School of International Studies, believes the rupiah slump itself will not lead to a repeat of the 1997/1998 Asian financial crisis because Indonesia’s economic fundamentals are currently sound.