Barter trade

Barter trade

The present hardships, unemployment, skyrocketing prices of
basic commodities as the result of the monetary crisis would not
have happened if the exchange rate for the rupiah against U.S.
dollar had not depreciated to such low level. Because the rupiah
is so influenced by the U.S. dollar, the higher the demand for
the dollar, the lower the value of the rupiah will become.

I vividly remember that in 1951 there were two blocks of
currencies -- the pound sterling and the U.S. dollar. The most
ideal situation would be, for example, to use pounds sterling for
transactions with Europe, dollars for the U.S. and yen for Japan
and the Asian region.

As matters stand now, it is very difficult for an Indonesian
importer to do business. It was reported recently that in Sydney,
Australia, there were talks on barter trade between Australia and
Indonesia. For example, Australia could export cattle to
Indonesia and in reciprocation Indonesia would pay for it with
palm oil, timber, plywood, etc.

This is not a bad idea.

A. DJUANA

Jakarta