Asymmetric information fuels twin crises in Indonesia, sparking economic turmoil.
The twin crises in Indonesia during 1997-2000 were caused by problems with information in the banking sector, leading to a currency crisis. Issues like high non-performing loans and weak regulations made the banking system vulnerable. Political instability and uncertainty about economic reforms worsened the situation. Understanding these factors can help prevent similar crises in the future and strengthen Indonesia's financial sector.