People powerless under currency crisis

People powerless under currency crisis

JAKARTA (JP): The plunge in the rupiah value and skyrocketing
interest rates are hurting the lives of many people and hindering
business activities.

The Jakarta Post interviewed people from different walks of
life on how they have been affected, and how they are coping.

Poppy Dharsono, a fashion designer, businesswoman and chair of
the Association of Indonesian Garment and Accessories Suppliers:

Presently, it seems like there is no appreciation of the
rupiah, like we are being invaded in our own country. We are
charged in dollars, but our customers pay in rupiah.

As a supplier, the crisis is hurting my business. I don't know
the solution because I am not an expert. I only hope that the
government and Bank Indonesia will do something.

I fear that many workers, especially those working in the
textile and garment industry, will lose their jobs unless
something happens soon. I've heard that even now, many people are
losing their jobs.

Mira Sumantri, a housewife living in Kemang, South Jakarta:

The currency crisis is affecting my family's life.

I have two sons studying in the United States. Their tuition
fees and living expenses have soared by four times. Of course,
this is hard for me and my husband.

Fortunately, my eldest son has been accepted as a paid intern
in a company, so he can save some money.

Because of the crisis, I'm now thinking of returning to work,
probably joining my husband in running his PR company. I have a
degree in communications which I have never used. I think I can
help find more clients.

I cannot just sit around at home doing nothing. At least I can
earn money by joining the company, or other marketing and
communication firms. I cannot abandon my sons abroad.

The crisis also forced me to cancel my plan to take a business
course in Singapore. The most important thing now is to help my
sons continue their studies. I do not want them to quit now, not
ever. I believe this is a temporary crisis and the condition will
return to normal again.

Gusti, financial director of a major distributor: It's been
tough, especially when everything started happening about six
weeks ago.

We wanted to withdraw about Rp 3 billion from one private
bank, but their manager called and said he was unable to process
it. So we met and discussed it. What else could we do? Luckily,
we keep deposits in different banks. Eventually, we could
withdraw those funds.

Personally, I was worried at first because my salary is in
rupiah. But our company gave some employees raises. My salary
went up 60 percent to compensate.

Herman Tjahja (a pseudonym), a 28-year-old private bank
employee: I have had to postpone my wedding. This crisis has
dashed my hopes of buying a house in Bekasi.

My fiance and I were planning to buy a house in Bekasi after
our wedding, but the soaring interest rates made the house
prohibitively expensive.

My salary is small and it does not look like I will get a pay
rise. What can I do? I can't get married and live under a
bridge.

Before the crisis, I was told that I could make a monthly
payment of Rp 1.6 million with 21 percent interest. But since the
interest rate doubled to 40 percent two months ago, I would now
have to pay Rp 2.8 million a month.

That is crazy. I could not possible afford it now.

Fortunately, my future bride understood after I explained the
situation. She was naturally upset in the beginning. She is still
young and she accepted that she would have to wait a little while
longer.

We have to be realistic and wait for another chance to buy a
house when the monetary situation improves.

Marcus, customer relations manager at a foreign bank:

I think our customers are taking a wait-and-see stance,
waiting for what will happen with the IMF. Of course, they are
worried, but the current rupiah exchange rate is still
manageable. We really haven't had many customers withdrawing
their funds. Other than that, I don't want to say anything. This
is a very sensitive issue. And don't use my real name.

Tommy Kurniadi, president director of Hardy Amies Indonesia:

The currency crisis has given me a headache. It seems to me
that the rupiah is no longer considered legal tender in its own
country, as many people are asking us to pay in dollar.

On the other hand, both our income and our workers' salaries
are in rupiah, not dollars.

If this situation goes on, I am afraid that many workers will
lose their jobs because employers cannot afford the high
production costs and paying their wages at the same time.

Gito Rollies, a rock singer: Thank God, I'm not affected by
the crisis. Maybe this is because the crisis is not my concern
and money is not my life goal.

The crisis does not affect me because I receive payments in
rupiah. But, once again, salary is not my primary concern.

So far, we've been managing okay with our daily expenses and
we have nothing to complain about. But then again, we're not as
worldly as we were before.

But I hope the crisis won't go on for too long. It's a pity if
poor people have to suffer because prices of basic necessities
have increased.

If the crisis continues, we will also have to be more thrifty
with our expenses.

Actually, I am ashamed that our country keep relying on
foreign aid. I think the aid is only needed by certain people.

Adi M.S., composer and conductor of Twilite Orchestra: My
professional life has been affected by the crisis.

I used to go to Melbourne to record my music, but I have to be
more realistic now because the trip costs me 40 percent more than
it used to. So, I've had to compromise the quality of my
recordings because of the crisis.

My family was prepared for the crisis. We were suspicious of
the rapid increase in the prices of many goods. Now, we have to
think twice before spending our money on leisure activities.

I'm concerned by the crisis because I can't do anything about
it. I can only watch what is going on and follow the situation on
the Internet.

I think the crisis is partly caused by our bad habits, such as
corruption and collusion practices, not to mention the
government's discriminatory policy in favor of a particular
group.

Theresia, a housewife living in Bekasi: The rise in prices is
terrible, but I consider the crisis to be a blessing in disguise.

This has forced us to tighten our belts. From now on, I insist
my husband account for every rupiah he spends. We have got to
live within our means.

We are not cutting back on our expenditures, but we will
economize. For example, I won't take a taxi except in an
emergency.

I understand that gasoline prices will increase soon. When
that happens, I will suggest to my husband that he sell his car,
and wait until the economy improves before buying a new one.

Suyatno, a civil servant: The currency woes have not really
affected me because I have several plots of land.

Price hikes have affected me a little, because I'm not an
extravagant person. I like to live modestly, including in terms
of what I eat and wear. I don't even have a credit card.

If the economic crisis worsens and begins to burn me, I will
sell one of my plots of land.

My wife is not fond of shopping, either. Her biggest spending
of the year is during the Idul Fitri holiday.

Most of my salary goes toward the schooling of my four
children. I don't consider this payment to be a big problem
because most parents face the same thing. (team)