Strengthening the rupiah

Strengthening the rupiah

We welcome the President's instruction for finance minister
Bambang Sudibyo to take the necessary steps and evaluate once
again the possible effects that the declining value of the rupiah
could have on the state budget. Such measures could at least help
us to anticipate further falls in the rupiah's value against the
U.S. dollar.

In view of the shortage of foreign exchange reserves, however,
the monetary authority should take care that any intervention be
done at the right moment -- which is when market sentiment is
improving. It is for the governor of Bank Indonesia and the
minister of finance to determine the timing.

It is time that business starts cooperating with the monetary
authority so that our efforts can be successful and growth can
reach the level of 5 percent, as the President hopes. Let us stop
suspecting each and every official policy and instead help to
strengthen the government's credibility in the eyes of the world.

-- Bisnis Indonesia, Jakarta