'I love profit'

'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