Politics must not interfere BI

Politics must not interfere BI

Perhaps Mr. Kwik Kian Gie's Will Indonesia adopt a fixed-rate
system? (June 16, 1999), would do well to consult the Internet
web page of Bank Indonesia. There he will find information
regarding the recently adopted banking acts and laws, and in
particular discussion of act 23/1999 concerning BI's
independence. He may be surprised to learn that Bank Indonesia
now has sole responsibility for the value of the rupiah and
implementation of monetary policy. There is no mention of the IMF
or any other parties.

This enormously important step means Indonesia has joined
other successful economies in granting its central bank
independence from politicians. Indeed, it is noted in a press
release from Bank Indonesia, also published on its web page that,
"... experience in the past has shown that BI's lack of full
authority in the execution of its tasks... can prove fatal to
the achievements of its goals".

Unless he intends to resign his post in the PDI Perjuangan and
seek that of Governor of Bank Indonesia, a position not available
for some time, Mr. Kwik Kian Gie should spend his valuable time
on important political matters, and leave the currency to Bank
Indonesia.

SEBASTIAN SHARP

Jakarta