The Indonesia's government and central bank are expected to take action this week to halt the rupiah’s slide, as the currency breached the important level of 11,000 against the US dollar on Tuesday morning.

The currency reached its lowest level since July 23 2001 after US crude oil prices reached a record high of US$70 per barrel on Monday. Rising oil prices will greatly increase the amount Jakarta spends on fuel subsidies — now expected to cost $14bn, or a third of the central government’s expenditures this year.