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.