All domestic transactions 'must be done' in rupiah

All domestic transactions 'must be done' in rupiah

JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
has urged the government to require all domestic business
transactions to be done in rupiah.

"The government needs to rule that all services and goods
offered domestically be priced in rupiah instead of foreign
currencies," Aburizal Bakrie was quoted by the daily Bisnis
Indonesia as saying.

"The government must make the rupiah the only valid currency
for domestic transactions," he said.

The measure would reduce dependency on the U.S. dollar, he
said.

It would also boost demand for the rupiah and would ease the
currency crisis caused by the loss of confidence in the rupiah.

"Malaysia uses the ringgit, Japan uses the yen and Thailand
uses the baht.

"Why... do we still use the dollar?" he asked.

Rental of retail space, shops in the shopping centers and some
apartments and houses are some transactions quoted in dollars.

The dollar is also used at hotels, some private schools and
legal services.

The U.S. dollar has more than doubled its value against the
rupiah since July.

Late last year, the finance minister said the government did
not prohibit businesses from using the dollar as a base for local
transactions as long as payments could be made in rupiah.

The Indonesian Association of Retailers has complained that
the use of the dollar for retail rental space has burdened
companies.

The rising dollar has also put pressure on publishing
companies, as it more than doubled the price of newsprint, the
raw material of newspapers, which are sold in rupiah. (das)