Stable rupiah more acceptable

With regard to your editorial of Jan. 17, 2001, I am glad to know that more and more people (and the press) agree with the new central bank policy on rupiah transactions for non-residents. I still remember that six months ago such an idea was not accepted by the press, and rejected by many analysts.

However, being an Indonesian newspaper, it would be better if you write more about the positive points of such policies rather than their weaknesses.

More and more people now realize that Indonesia has the most liberal currency system in the world, which is actually not suitable at the moment given the current crisis situation. Many people are now beginning to understand that even though China, India, or Taiwan have much stricter currency systems than Indonesia, foreign investors continue going to those countries.

I do believe that a more stable rupiah, a stronger level than the current level, is much better for our children. I believe that with an exchange rate of Rp 7000 to Rp 8000 our export is already competitive (remember that Thailand's exchange rate depreciated from 25 baht to 42 baht, while China's yuan is fixed but their exports are very competitive).

Indonesian exporters should not depend too much on price competition, but more on quality and efficiency.

MIRZA ADITYASWARA

Banking analyst

Jakarta