The Asian financial crisis, which broke out in mid-1997, paralyzed the Indonesian economy with the rupiah losing 80% of its value against the US dollar at the peak of the turmoil.
On May 21, 1998, Soeharto resigned after 32 years in power and was replaced by B.J. Habibie following bloody violence and riots. Indonesia held its first democratic election in October 1999, which put Abdurrahman 'Gus Dur' Wahid in the role of president.