Stable rupiah more acceptable

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