SYDNEY: Capital has been flowing out of emerging economies around the world, causing currencies and financial markets to fall. While tightening global liquidity was the initial catalyst, the threat from Donald Trump’s trade war and fear that "contagion" might spread from Turkey and Argentina have added fuel to the fire. Indonesia has found itself at the centre of such concerns in Asia. The Indonesian rupiah has fallen about 10 per cent since the start of the year and is now reaching lows not seen since the Asian Financial Crisis. This has prompted much concern in Jakarta, where the scars from that crisis still run deep and many know all too well that "contagion" is a real thing. Policymakers have thus reacted strongly, happy to crimp economic growth for the sake of greater stability. READ: Asian equities dive as emerging market fears add to trade woes CONCERNS OF CONTAGION OVERBLOWN But is Indonesia really at risk of "contagion"? The rupiah’s fall to date has not … [Read more...] about Commentary: Sliding Indonesia rupiah causes Jakarta jitters