'I love profit'<\/p>\n
In an attempt to help alleviate the shortage of dollars in
\nIndonesia due to the current economic situation, people are being
\nencouraged to exchange personal dollars to rupiah in the \"I Love
\nRupiah\", campaign. Unfortunately at the time Indonesia is trying
\nto convince the international community of its national integrity
\nand the transparency of its institutions and systems, the very
\nentities largely responsible for the current financial woes, the
\nbanks and other such related financial institutions, exploit the
\nsituation.<\/p>\n
On Jan. 13, 1998, The Jakarta Post published the official Bank
\nExim conversion rates for U.S. dollars which were, buying Rp
\n8,000, selling Rp 10,000, which gives a spread of 25 percent
\nbased on the buying price. The same day in Bank Exim the rates
\nquoted were buying Rp 5,450, selling Rp 9,000, which gives an
\nactual spread of 65 percent based on the buying price.<\/p>\n
Citibank, usually one of the more professional banks, now
\nappears to have joined the \"I Love Profit\" club and on Jan. 14,
\n1998 their Landmark building, sixth floor counter quoted buying
\nRp 6,450, selling Rp 9,550, giving a spread of 48 percent based
\non the buying price. Over the previous weeks Citibank had been
\noperating on a much more acceptable percentage spread.<\/p>\n
A request for an explanation of the current situation and an
\ninquiry as to the possibility of an increase in the buying rate
\ndue to the relatively large amount of dollars I wished to
\nexchange, met with indifference. The result was that I did not
\nchange any dollars at the bank and I settled my rupiah obligation
\nto a local businessman in cash U.S. dollars, for which I received
\nan exchange rate of Rp 7,800 for one U.S. dollar. It is sad to
\nsee that once again a worthwhile endeavor in the form of the \"I
\nLove Rupiah\" campaign is being interpreted by some as \"I Love
\nProfit\" and that in the face of national crisis the banks, who
\nare charged with the responsibility of helping to turn the rupiah
\naround, take advantage of the situation to make unacceptably
\nlarge profits.<\/p>\n
If the situation continues in which individuals cannot obtain
\nan equable rate of exchange for their U.S. dollars, or any other
\nhard currency for that matter, from the banks then the practice
\nof paying for things directly in U.S. dollars will increase and
\nas a consequence those dollars will not contribute to the
\nnational good.<\/p>\n
CRAIG J. JONES<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/i-love-profit-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }