Keeping the rupiah in check

Money, at present, is not just legal tender. It has become a commodity as well as a war device, or an instrument to topple a government. For those reasons it is extremely difficult to keep the rupiah in check. The currency is very exotic and has proved itself to be profitable to speculators. Indonesia's geopolitical position and its great influence on its neighbors are additional factors that must be considered. If Indonesia's policies are not in agreement with the interests of certain other countries, the rupiah, which is traded freely in New York or Singapore, could be in jeopardy.

IMF officials are expected to arrive here on Sunday. This will be a good opportunity to tell them of the need to take some specific actions to control the rupiah. The IMF will probably not oppose some soft foreign exchange controls since Indonesia that has to be supported forever will be a burden to the IMF.

The IMF's top leadership has already changed. Hopefully its policy stance will also change by detaching banker's calculations from politics.

-- Bisnis Indonesia, Jakarta