The easy money flowed in when the exchange rate was 2,400 rupiah to the dollar. Foreign lenders have agreed to roll over Korea's corporate obligations. That explains the spate of downsizing and bankruptcies. Indonesian companies have yet to parley in earnest. They had borrowed directly from international banks instead of going through local financial institutions.
Banking systems are on life support.
Local lenders desperately need to boost their capital to be able to write off bad debts and regain sound financial footing. Some investors have moved in, but more are needed. Siam City is one of four banks taken over by the Thai government. Exports are not growing as much as hoped. Exports are supposed to lead Asia out of its malaise.