Exporters' greed and hypocrisy

Exporters' greed and hypocrisy

Why has the strengthening of the rupiah against the U.S.
dollar to about Rp 7,000 worried our exporters? Is it because the
profit they reaped was not enough when the value of rupiah
against the U.S. dollar was very weak at Rp 15,000?

I am really disappointed with the government's reaction to the
appreciation of the rupiah against the U.S. dollar. Instead of
expressing gladness over the strengthening exchange value of
rupiah, the government is worried that our exporters will reap
less profit. It seems that the government pays more attention to
exporters -- not to say spoils them -- over the 200 million
Indonesian people whose income is earned in rupiah. Is it fair?

Or, perhaps, our officials have safely stashed their U.S.
dollars abroad and are therefore worried that their deposits will
decrease in value.

Imagine this scenario. With $1 valued at Rp 7,000, our high-
ranking officials earning Rp 10 million ($1,428) a month are not
far different in terms of salary from housemaids, chauffeurs and
babysitters abroad, who generally earn a monthly average of
$1,000.

Therefore, government officials must be careful when talking
about the ideal exchange rate of only Rp 7,000 to Rp 8,000 to the
dollar. As an Indonesian, I personally believe that the ideal
exchange rate is Rp 1,000 to the dollar, which is very unlikely.
However, in the absence of constraints posed by the U.S. dollar
depositors referred to above, I believe that it is very likely
that the exchange rate will return to its previous level of Rp
2,500 to the dollar.

ST. TRIDASA TOSIB

Jakarta