Street money changers rue rupiah stabilization

Street money changers rue rupiah stabilization

JAKARTA (JP): Black market money changers are preparing to
find other jobs or return to their former professions following a
significant slowdown in foreign exchange transactions.

"In comparison to the same period last year, the foreign
exchange business is now slowing down," Sutrisno, a street broker
on Jl. Kwitang in Central Jakarta, told The Jakarta Post on
Saturday.

"Street brokers used to obtain profits from the fluctuating
rupiah rate against the U.S. dollar. So if the rate steadily
improves following the recovery of the economic and political
situation, the foreign exchange business will no longer be a
promising one."

He said that last year's wild fluctuations in the rupiah
enabled him to take home Rp 200,000 (US$28.50) every day.

Due to the good foreign exchange business, Sutrisno decided to
leave his job as an attendant at a Padang food restaurant, where
he had earned Rp 250,000 per month.

He said business significantly dropped off two days after the
election on Wednesday of Muslim leader Abdurrahman Wahid to the
presidency and the appointment on Thursday of Indonesian
Democratic Party of Struggle (PDI Perjuangan) leader Megawati
Soekarnoputri to the vice presidency.

"Since then, I can only earn Rp 10,000 a day, although I also
work part-time as a parking attendant," he said.

Sutrisno said he had not decided what he would do if the
foreign exchange business continued to deteriorate.

The rupiah has continued to strengthen against the greenback
in recent months, especially after the election of the country's
state leadership team. Money changers set on Saturday the buying
rate at about Rp 6,700 per dollar and the selling rate at about
Rp 6,900.

The greenback rate against the rupiah reached its peak at Rp
17,000 last year, from Rp 2,400 during the stable economic times.

Another money changer, Lukman, said traders were currently
only able to obtain very small profits due to the small trading
margin of between three to five digits only.

Lukman, a father of three children, said he would consider
returning to his former business as a broker of electronic goods.

The foreign exchange business mushroomed in the city from last
year when the city was hit by a serious economic crisis. Many
such illegal businesses operated on Jl. Kwitang, part of Jl.
Cikini Raya and part of Jl. Gunung Sahari Raya, all in Central
Jakarta.

Low-income earners and unemployed people were drawn to the
business because no start-up funds were required. They worked for
big dealers who provided money for the transactions.

Street broker Feri, who runs a business on Jl. Gunung Sahari
Raya, predicted that within a month the estimated 20 money
changers in the area would substantially drop off.

"Profits will continuously decrease if the country's economic
and political situation is better," he said.

Feri, an employee with a private company, said the slowdown in
the foreign exchange business would not seriously affect his
income because he only worked the job on the side. (ind)