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