Street money changers rue rupiah stabilization<\/p>\n
JAKARTA (JP): Black market money changers are preparing to
\nfind other jobs or return to their former professions following a
\nsignificant slowdown in foreign exchange transactions.<\/p>\n
"In comparison to the same period last year, the foreign
\nexchange business is now slowing down," Sutrisno, a street broker
\non Jl. Kwitang in Central Jakarta, told The Jakarta Post on
\nSaturday.<\/p>\n
"Street brokers used to obtain profits from the fluctuating
\nrupiah rate against the U.S. dollar. So if the rate steadily
\nimproves following the recovery of the economic and political
\nsituation, the foreign exchange business will no longer be a
\npromising one."<\/p>\n
He said that last year's wild fluctuations in the rupiah
\nenabled him to take home Rp 200,000 (US$28.50) every day.<\/p>\n
Due to the good foreign exchange business, Sutrisno decided to
\nleave his job as an attendant at a Padang food restaurant, where
\nhe had earned Rp 250,000 per month.<\/p>\n
He said business significantly dropped off two days after the
\nelection on Wednesday of Muslim leader Abdurrahman Wahid to the
\npresidency and the appointment on Thursday of Indonesian
\nDemocratic Party of Struggle (PDI Perjuangan) leader Megawati
\nSoekarnoputri to the vice presidency.<\/p>\n
"Since then, I can only earn Rp 10,000 a day, although I also
\nwork part-time as a parking attendant," he said.<\/p>\n
Sutrisno said he had not decided what he would do if the
\nforeign exchange business continued to deteriorate.<\/p>\n
The rupiah has continued to strengthen against the greenback
\nin recent months, especially after the election of the country's
\nstate leadership team. Money changers set on Saturday the buying
\nrate at about Rp 6,700 per dollar and the selling rate at about
\nRp 6,900.<\/p>\n
The greenback rate against the rupiah reached its peak at Rp
\n17,000 last year, from Rp 2,400 during the stable economic times.<\/p>\n
Another money changer, Lukman, said traders were currently
\nonly able to obtain very small profits due to the small trading
\nmargin of between three to five digits only.<\/p>\n
Lukman, a father of three children, said he would consider
\nreturning to his former business as a broker of electronic goods.<\/p>\n
The foreign exchange business mushroomed in the city from last
\nyear when the city was hit by a serious economic crisis. Many
\nsuch illegal businesses operated on Jl. Kwitang, part of Jl.
\nCikini Raya and part of Jl. Gunung Sahari Raya, all in Central
\nJakarta.<\/p>\n
Low-income earners and unemployed people were drawn to the
\nbusiness because no start-up funds were required. They worked for
\nbig dealers who provided money for the transactions.<\/p>\n
Street broker Feri, who runs a business on Jl. Gunung Sahari
\nRaya, predicted that within a month the estimated 20 money
\nchangers in the area would substantially drop off.<\/p>\n
"Profits will continuously decrease if the country's economic
\nand political situation is better," he said.<\/p>\n
Feri, an employee with a private company, said the slowdown in
\nthe foreign exchange business would not seriously affect his
\nincome because he only worked the job on the side. (ind)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/street-money-changers-rue-rupiah-stabilization-1447893297",
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