The search for dollar profit: A tale of two cities<\/p>\n
By Stevie Emilia and Tedy Novan<\/p>\n
JAKARTA (JP): \"Hurry up, change all your dollars into rupiah
\nnow or you will suffer a great deal. The rupiah's value is
\nstrengthening...\" a man on a cellular phone said at a Gunung
\nAgung money changer here.<\/p>\n
He was in a long line with scores of people looking to get the
\nmost from their savings.<\/p>\n
The currency turmoil has seen most people suffer -- but a few
\nhave profited, intentionally or otherwise.<\/p>\n
In Central Jakarta, Kartika Soebandri, a housewife and a
\nmother of three, was one of the lucky ones who saved her family
\nin the rush.<\/p>\n
\"I'm only a housewife, I don't have time to follow each new
\nreport about the currency crisis. But I was told by my brother,
\nwho works in a private bank, to exchange my savings into
\ndollars,\" said Kartika, a senior high school graduate.<\/p>\n
She was at first reluctant to do so, she said, because she had
\nnever had dollars before. She decided to make time to look at the
\nnews.<\/p>\n
\"When I read in the newspapers about the continuous decline of
\nthe rupiah, I followed my brother's advice,\" said Kartika.<\/p>\n
She exchanged all her savings into dollars, when the greenback
\nwas still about Rp 4,000.<\/p>\n
\"I was only thinking how I could keep making ends meet. My
\nhusband is only a government employee, and all my children are
\nstill at school.\" said Kartika.<\/p>\n
Her husband was at first angry at her for not consulting him
\nbefore taking such a step.<\/p>\n
\"He said I was a fool because he believed the rupiah's value
\nwould increase,\" said the 38-year-old woman.<\/p>\n
When the rupiah dived to Rp 10,000 against the dollar, she was
\nagain advised by her brother to sell some of her savings.<\/p>\n
\"My husband was finally grateful... our savings have almost
\ntripled,\" said Kartika.<\/p>\n
She still keeps a few dollars in reserve, \"just in case the
\nrupiah falls again\".<\/p>\n
In Yogyakarta, Mrs. Said, a 43-year-old housewife from Riau,
\nalso said she never paid attention to currency trading, and had
\nfollowed the advice of her son. The family had plans to send the
\nsecond of their five children to study overseas.<\/p>\n
\"Although the dollar has a higher rate than usual, I was
\ncompelled to buy US$5,000,\" said Mrs. Said, the widow of a
\ngovernment employee.<\/p>\n
IMF<\/p>\n
Her savings doubled, and now she follows the news every day
\nabout the value of the rupiah, the President's health and market
\nanalyses.<\/p>\n
But she miscalculated the effect of the IMF deal with the
\ngovernment, thinking the rupiah would strengthen but the opposite
\nhappened.<\/p>\n
\"I lost, but only $3,000,\" she said.<\/p>\n
The avid reader of The Economist and Business Week
\nacknowledged she was profiting from the situation, but said \"the
\ngovernment and conglomerates are also to blame for messing up the
\neconomy\".<\/p>\n
She recently sold $300,000 and managed to renovate her house.
\n\"I got 10 times my original value,\" said the high school graduate
\nwith a smile.<\/p>\n
Mrs. Said now makes an average of three transactions a week,
\ndepending on the exchange rate.<\/p>\n
Kartika, Mrs Said and others who thought they were doing the
\nright thing may be surprised by the recent announcement by the
\nIndonesian Council of Ulema, that dollar-speculating was haram
\n(forbidden by Islam).<\/p>\n
These included Handayani, a private bank employee in Bendungan
\nHilir, Central Jakarta, and a chairperson of a foundation for the
\nmentally handicapped.<\/p>\n
Home<\/p>\n
Handayani was also a hesitant participant in the rush to buy
\ndollars. She exchanged all her savings into dollars following the
\nclosure of 16 private banks last November.<\/p>\n
\"I was afraid I would lose my job,\" said the employee, who
\nbought U.S. currency at a rate of Rp 5,000.<\/p>\n
\"I didn't have huge savings even after working for more than
\nfive years. And they were effectively getting smaller day by day
\nwith the depreciation (of the rupiah),\" said Handayani, who
\ndeclined to reveal how much she had saved.<\/p>\n
Her plan to buy a dream house was coming increasingly under
\nthreat.<\/p>\n
When the dollar reached Rp 10,000, she decided to buy rupiah,
\ninsisting she only exchanged as much as she needed for the house.<\/p>\n
Apparently she was disturbed by reports of people profiting
\nfrom the high dollar rate, as if she would be labeled among those
\noblivious to the suffering of others around them.<\/p>\n
\"It was hard to decide whether to keep the dollars or to
\nexchange them into rupiah at the time of the crisis,\" Handayani
\nsaid.<\/p>\n
Now Handayani feels more secure.<\/p>\n
\"If I lose my job at least I've got the house.\"<\/p>\n
She says she is still \"amazed\" that she got her dream house in
\na such short time, and that the remainder of her savings, which
\nhas doubled, remain substantial.<\/p>\n
The crisis has also brought fortune to a foundation for
\nmentally disabled children in South Jakarta.<\/p>\n
The 83-year-old chairwoman was worried about the distressing
\ncurrency reports, so she had the treasurer take $1,000 out of the
\nfoundation's deposit account and exchange it into rupiah.<\/p>\n
\"We had no intention to take advantage of the rush,\" the
\ntreasurer said, explaining that the $1,000 was money that would
\nnot usually have been exchanged in such circumstances.<\/p>\n
\"We faced difficulties in raising funds, and we had to pay the
\nteachers' Idul Fitri allowance,\" she said.<\/p>\n
The decision was taken earlier this month, when the dollar's
\nselling rate was Rp 6,890.<\/p>\n
Thanks to the shrewd chairwoman, all the foundation's teachers
\ncan enjoy their hard-earned Idul Fitri holiday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/the-search-for-dollar-profit-a-tale-of-two-cities-1447893297",
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