Foreign investment cure for doldrums

After the floating of the Indonesian rupiah last month, it depreciated by more than 15 percent. Now it is time for the government to attract foreign investment, especially in the real estate and property business.

As a result of the rupiah's devaluation, the property business has been in the doldrums because industry workers, especially those in apartment sales, require payment in U.S. dollars. But the U.S. dollar has become so expensive that most locals are losing interest in investing in or owning apartments.

If the government of Indonesia allows foreigners/expatriates to own property here then it will attract lots of investment. This strategy will not only pull the property business out of the red but also arrest further devaluation of the rupiah.

I hope the authorities will understand the content of this letter and do what is needed to halt devaluation.

Allowing foreigners/expatriates to own properties -- like in Singapore and Australia -- will bring in lots of U.S. dollars to Indonesia and even perhaps strengthen the rupiah to its pre-float value.

V.N. MURTHY

Jakarta