AT the start of each year, the rupiah seems to go through hard times. In the past month, its value declined past the Rp12,000 threshold to the US dollar. Yet, looking back at the first quarter of 2013, we were already panicking when it reached Rp10,000. Many are now predicting that the rupiah will continue to decline, particularly since the Fed or the US Treasury plans to reduce its fiscal stimulus.

The domestic economic condition does not seem