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