Soeharto puzzled by rupiah fall<\/p>\n
JAKARTA (JP): President Soeharto found it extremely difficult
\nto understand why the rupiah had continued to fall against the
\nU.S. dollar, a senior minister said yesterday.<\/p>\n
The President therefore ordered economic officials, assigned
\nto handle the monetary upheaval, to closely monitor the situation
\nand keep him posted of the latest developments, Minister\/State
\nSecretary Moerdiono added.<\/p>\n
\"The Monetary Council and the President himself have found it
\nextremely difficult to understand why the rupiah dropped to such
\na low level,\" Moerdiono said after meeting with Soeharto at his
\nresidence on Jl. Cendana, Central Jakarta.<\/p>\n
Asked about the government's measures to cope with the
\nfinancial chaos, Moerdiono said: \"I think it's an important time
\nfor introspection. We do not need to blame one another, but the
\ngovernment will do its best to overcome the currency crisis. We
\ntry to give people results, not just promises.\"<\/p>\n
The rupiah fell to a historic low of 5,980 to the dollar on
\nTuesday, but has since recovered to about 5,500 yesterday.<\/p>\n
Despite mounting pressure, Moerdiono reaffirmed the
\ngovernment's position that Indonesia would not reschedule its
\nforeign debt.<\/p>\n
\"We never think about a rescheduling. Indonesia will try as
\nhard as it can to fulfill its obligations,\" he said.<\/p>\n
Minister of Finance Mar'ie Muhammad had said earlier that the
\ncountry's foreign debt totaled US$117 billion as of September,
\nincluding $65 billion owed by the private sector.<\/p>\n
The state secretary rejected allegations from some analysts
\nthat the International Monetary Fund's (IMF) prescription had
\nfailed to cure the country's ailing economy.<\/p>\n
\"Indonesia sought help from the IMF, and it fully supports our
\nprograms... Other countries are also facing similar problems like
\nus... This is a great turmoil and we need some time to solve the
\nproblem,\" Moerdiono said.<\/p>\n
Soeharto also summoned State Minister of National Development
\nPlanning Ginandjar Kartasasmita and Minister of Industry and
\nTrade Tunky Ariwibowo to his residence yesterday.<\/p>\n
Soeharto ordered Ginandjar last week to intensify relief
\noperations to drought-hit regencies in Irian Jaya. He was also
\nordered to provide labor-intensive projects in big cities,
\nincluding Jakarta and Surabaya, to employ laborers.<\/p>\n
Trade surplus<\/p>\n
Tunky said after the meeting that Indonesia enjoyed an
\ninternational trade surplus of $7.7 billion in the first three
\nquarters of this year, resulting from total exports of $39.5
\nbillion, compared to imports of $31.8 billion.<\/p>\n
The exports represented a 9 percent increase over the same
\nperiod last year and imports were down 0.5 percent.<\/p>\n
\"Our non-oil and gas exports totaled $30.8 billion, or 10.3
\npercent higher than last year... while non-oil and gas imports
\nwere about $28.8 billion, or 2 percent less,\" Tunky added.<\/p>\n
Tunky said the country's imports declined due to the impact of
\nthe financial crisis and the rupiah's sharp depreciation against
\ndollar.<\/p>\n
\"The surplus in our non-oil and natural gas trade was very
\nhuge compared to the same period last year, which posted a trade
\ndeficit of $1.98 billion,\" Tunky noted.<\/p>\n
The government expects total exports to reach about $45
\nbillion to $46 billion next year.<\/p>\n
\"We expect our total exports this year to be about $42
\nbillion,\" Tunky said.<\/p>\n
The minister also announced a government decision yesterday to
\nslap a surcharge on crude palm oil (CPO) exports to further
\ndiscourage exports in a bid to secure adequate supplies in the
\ndomestic market.<\/p>\n
The current export tax for CPO is 5 percent and for olein 2
\npercent.<\/p>\n
The surcharge, Tunky said, would be determined by the finance
\nminister.<\/p>\n
The government had earlier imposed a nationwide export quota
\non CPO amounting to only 25 percent of total production to secure
\nadequate supplies for the domestic market.<\/p>\n
However, an additional restrictive measure, in the form of an
\nexport surcharge, was considered necessary because producers
\nstill preferred exports due to rising prices in the international
\nmarket and the steady depreciation of the rupiah.<\/p>\n
Tunky acknowledged that demand in the international market had
\nbeen increasing, but maintained that the government had to
\nprioritize domestic interests. (prb)<\/p>\n
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