Poll sees stronger Rp

Poll sees stronger Rp

Reuters, Jakarta

Indonesia's rupiah currency is forecast to hover around the
10,435 level against the U.S. dollar by the middle of 2002 and
strengthen to 9,995 by the year-end, a Reuters poll of nine
economists showed.

The rupiah was quoted at 10,400 against the dollar on
Thursday. Indonesia's 2002 budget has assumed an average rupiah
rate of 9,000 against the dollar.

Some economists said improved political stability in Jakarta
since President Megawati Sukarnoputri took power six months ago
should help the rupiah, possibly enticing more export earnings to
be repatriated.

"Basically the political climate is expected to improve in
2002... Relations with (Indonesia's) donors should also remain
firm," said Fauzi Ichsan at Standard Chartered Bank in Jakarta.

However, economists said lingering concern over slow economic
reforms, such as stumbling attempts to kickstart a privatization
program, would weigh on the currency.