Rupiah's drop saddens many, benefits some

Rupiah's drop saddens many, benefits some

JAKARTA (JP): The rupiah's downfall has delighted some
Jakartans, especially those who are paid or have deposits in U.S.
dollars.

But the weakening of the rupiah (from Rp 2,300 in June to over
Rp 8,150 against the U.S. dollar yesterday) has paralyzed the
businesses and the future of many people here.

The Jakarta Post reporters talked with Jakartans about the
issue and here are some excerpts.

Sudiono, an executive of a retail computer firm: "Our business
is facing a nightmare at the moment with no end in sight. Before
the crisis, we normally could sell at least five PC units per day
in a showroom. Nowadays, it's a lucky day for us if one PC unit
is sold in a week.

"This situation has forced us to temporarily "divorce" 60 of
our 100 employees. Our salary has even been cut by 10 percent.
What else could we do under the situation. The price of our
computers, mostly imported from Taiwan and Singapore, has now
almost doubled from the previous price list. The new Pentium 233,
for example, is now priced at Rp 24 million, compared to Rp 12
million a few months ago. Now, could you tell me who wants to buy
such a product at such an expensive price? Gosh, I don't know
what to say anymore. I hope this nightmare will end soon."

Haryanto, a dentist: "As an ordinary citizen, I don't know
what's going on with our currency. I haven't decided yet whether
to hike my service fee because I'm afraid my customers would run
away. I know exactly that they are facing the same problem. It
seems that everything we've done in the past few years is
meaningless. Look at my boy, who has just graduated as an
architect. There's no job for him to go to since the property
sector has been badly affected by the current turmoil. I planned
to send him to study overseas but does he want to see his father
financially ruined?"

Dharno, a senior resident of Tangerang: "What do we have to be
worried about. It's all just about numbers, isn't it? My only
wish is for my family to have enough rice and fried fish to eat.
That's all. Nobody would like the 'old days' (the struggling
years of Indonesians in the mid-1960s) to happen again."

Elvry M. Budhiyanti, marketing executive of Tona Roma's
restaurant: "Like many other businesses, we of course have been
affected, but it's not too serious. The rupiah's drop has mainly
increased our food costs since we import about 98 percent of our
food materials. In terms of sales earnings, there has been a
slight drop over the past few months, but overall business is
still quite good for us. No matter what, we base our sales on
quality food."

Risman Hadrian, owner of a car accessories shop in West
Jakarta: "If I had a choice, I'd stop my business and stay at
home. But, who would pay my children's school fees and my two
workers' salaries? Can you imagine that the price of almost every
single item has been increased by our suppliers here? Even I
myself was shocked at the new prices. So, how could I tell the
price to my customers since I don't want to see people die in my
shop from heart attacks. I don't know whose fault and sin this is
that has pulled our country into such an awful economic
situation."

Udin, a co-owner of a money changer in Central Jakarta: "This
is a good time for us in the money changing business. Believe it
or not, we've enjoyed at least a Rp 300 million net profit over
the last three months alone. Before June, we were only making Rp
1 million in net profit a day, but nowadays we even once
collected a Rp 40 million net profit in just eight hours. I think
the big money changers are enjoying much bigger profits. Anyway,
I hope these good times could be extended throughout the year.
Ha... ha ..."

Arsil Moein, director of PT Ayumas Money Changer: "People who
bought dollars when the exchange rate was still at Rp 2,500 are
lucky if they kept them for savings. I think the government
doesn't have the power to halt this because the crisis is also
affecting other countries in the region."

(He refused to comment on the total value of his company's
daily transactions and net profits).

"I think the big transactions are being made by foreign
exchange banks, where the transactions can be up to millions of
dollars."

Jane, an expatriate: "For me, the rupiah's fall is a very big
concern because I get paid in local currency. I have a debt to
repay in Australian dollars and the more the rupiah declines, the
harder it is for me to make those repayments.

"All my family live in Australia, but I can't afford to buy a
ticket to fly home and see them since airfares are calculated in
American dollars. Even a one-way ticket would cost me more than
Rp 4.5 million.

"I know many people think I'm laughing all the way to the bank
but, apart from my own financial problems, it makes me really sad
to see a country like Indonesia, which has so much potential,
caught in such a dangerous downward spiral."

No one was able to predict whether the story of the rupiah
will have a happy ending or not.

Mira Sumantri, a housewife in Kemang, South Jakarta: "I have
two boys studying in the United States. Because of the monetary
crisis, their tuition and other expenses have been multiplied by
four. Of course it's hard for me and my husband. It's impossible
for us to survive since the rupiah plunged to over Rp 6,000. This
is crazy. If the condition doesn't get any better, I'll have to
ask the boys to come home. I'll also have to work now to help my
family's income. I can no longer sit at home and do nothing. At
first, I thought this was a temporary crisis. But now, I don't
know anymore."

Elman Sirait (not his real name), a private bank employee:
"The crisis has forced me to postpone my marriage because I can't
afford to buy a house for me and my bride-to-be due to the new
interest rates, which have risen from 21 percent to 40 percent.
Worse, my company doesn't seem to have any intention to raise my
salary. So what can I do? I couldn't possibly get married and
then live under a bridge. Luckily, my bride-to-be completely
understands the situation. She is still young. So, it's okay if
she has to wait just a little bit longer."

Ricky (not his real name), a main supplier of various items
for a branch of the Armed Forces: "The drop of rupiah against
U.S. dollar almost killed my business. I lost many opportunities
to win projects, either they were delayed or scrapped from the
department's budget. Fortunately, I still have a chance to do a
few projects on maintenance or refurbishment. For the time being,
we're doing business only if our client pays us in cash or in the
short term. It is also better if the contract payments were
arranged in U.S. dollars." (team)