Indonesia’s rupiah has plunged to record lows against both the US dollar and Singapore dollar, sparking market anxiety, political backlash and a flood of viral memes online. While Indonesian President Prabowo Subianto has sought to reassure the public that the country’s economic fundamentals remain strong, growing concerns over inflation, purchasing power and investor confidence are raising questions about the broader health of Southeast Asia’s largest economy.

So what’s really driving the rupiah’s sharp decline? How worried should ordinary Indonesians  and neighbouring countries like Singapore be about the potential economic ripple effects?

On The Big Story, Hongbin Jeong speaks with Adam Samdin from the Asia Macro team at Oxford Economics to break it all down.