Is Kwik dreaming?

Is Kwik dreaming?

(National Planning Board chairman) Kwik Kian Gie remains
faithful to his idea regarding the rupiah's exchange rate. He had
proposed that Indonesia adopt a fixed rate system for the
national currency even before he became a Cabinet minister.

Such a fixed rate system would be effective provided that the
government and the central bank can control a number of
indicators, such as the inflation rate, which is tied to the
amount of money in circulation.

In Indonesia at present, however, several of those indicators
are still being influenced by factors outside the economic
fundamentals. The market sentiment as well as social and
political conditions, for instance, still predominantly govern
the rupiah's exchange rate.

Kwik, however, believes that introducing a fixed rate system
at present will isolate the rupiah from any non-fundamental
uncertainty factors. But it seems difficult at this juncture to
implement Kwik's proposal. It is probably no more than a dream --
unless the government of President Megawati is politically
committed to push the idea through, whatever the risks involved.

-- Bisnis Indonesia, Jakarta