Sat, 13 Dec 1997

Bouraq private exchange rate

Did Bouraq know something about what was going to happen to the rupiah well before we all did? As of mid October it had set its own private, profit-making rate of Rp 4,100/US$ for people purchasing airline tickets. Prices were quoted in US$, but if you wanted to pay in rupiah, then you had to pay Bouraq Rp 4,100 for every dollar, while in the real world the exchange rate was still well below Rp 3,500/US$. We were purchasing return tickets to Singapore -- flying there on Nov. 19 (the day we paid for the tickets) and back on Nov. 22 -- hardly what you call an advance purchase, on Nov. 18/19 the common rate was Rp 3,500/US$.

Now we've become used to paying a slight "overcharge" for tickets purchased in advance -- say Rp 100 to Rp 200/US$ -- just to cover those inevitable changes in exchange rates. But Bouraq wanted to go one better and make this "overcharge" into their own little profit center. The rate they were forcing people to pay made them a nifty Rp 600/US$ or 17 percent -- not bad for doing nothing at all.

Somehow our usual travel agent (Floressa Wisata in Sanur) forgot to inform us in advance; we have been using their services for about two years. Bouraq had told them about their "special" exchange rate in mid October, leaving the agent plenty of time to let their clients know. As we had made prior arrangements to pick up our tickets on the way to the airport and had confirmed business meetings in Singapore, we were left with no choice but to be fleeced by both Bouraq and the travel agent. Bouraq added insult to injury, by overcharging us slightly for the prepaid airport tax for Singapore (US$11 vs. US$10) and then demanding we pay this amount at their own private exchange rate of Rp 4,100/US$.

On our return I contacted both Bouraq and our travel agent to complain and request a refund. Their approach to my complaint was to blame each other. Bouraq claimed the agent misunderstood their instructions and that this rate was only for "commercial transactions". Since then they made this explanation "non- operative", bringing their private exchange rate into line with the real world on Nov. 26.

My point here is not just the money involved -- the sum is relatively small -- but the principles and attitude of Bouraq in particular and secondly, the professional failure of the travel agent. By belatedly bringing their private exchange rate back into line with the official BI rate, Bouraq implicitly admit that they were "overcharging" for dollars from Nov. 1 to Nov. 25. If and when customers complain about this, the principled thing for Bouraq to do would be to make an apology and immediately pay a refund. Not try to blame the travel agent and dodge their responsibility. The agent, having failed in their duty to inform us of what Bouraq was up to, should simply apologize and make the refund, if, as it seems, Bouraq has lost track of their business principles.

SEAN FOLEY

Ubud, Bali