'I love profit'

In an attempt to help alleviate the shortage of dollars in Indonesia due to the current economic situation, people are being encouraged to exchange personal dollars to rupiah in the "I Love Rupiah", campaign. Unfortunately at the time Indonesia is trying to convince the international community of its national integrity and the transparency of its institutions and systems, the very entities largely responsible for the current financial woes, the banks and other such related financial institutions, exploit the situation.

On Jan. 13, 1998, The Jakarta Post published the official Bank Exim conversion rates for U.S. dollars which were, buying Rp 8,000, selling Rp 10,000, which gives a spread of 25 percent based on the buying price. The same day in Bank Exim the rates quoted were buying Rp 5,450, selling Rp 9,000, which gives an actual spread of 65 percent based on the buying price.

Citibank, usually one of the more professional banks, now appears to have joined the "I Love Profit" club and on Jan. 14, 1998 their Landmark building, sixth floor counter quoted buying Rp 6,450, selling Rp 9,550, giving a spread of 48 percent based on the buying price. Over the previous weeks Citibank had been operating on a much more acceptable percentage spread.

A request for an explanation of the current situation and an inquiry as to the possibility of an increase in the buying rate due to the relatively large amount of dollars I wished to exchange, met with indifference. The result was that I did not change any dollars at the bank and I settled my rupiah obligation to a local businessman in cash U.S. dollars, for which I received an exchange rate of Rp 7,800 for one U.S. dollar. It is sad to see that once again a worthwhile endeavor in the form of the "I Love Rupiah" campaign is being interpreted by some as "I Love Profit" and that in the face of national crisis the banks, who are charged with the responsibility of helping to turn the rupiah around, take advantage of the situation to make unacceptably large profits.

If the situation continues in which individuals cannot obtain an equable rate of exchange for their U.S. dollars, or any other hard currency for that matter, from the banks then the practice of paying for things directly in U.S. dollars will increase and as a consequence those dollars will not contribute to the national good.

CRAIG J. JONES

Jakarta