The fate of rupiah

I have been worried ever since the rupiah began to fall, not because I have particular need of dollars, but because the rupiah has lost its credibility as a means of exchange. Now rupiah are just like any another commodities, with a value determined at will by speculators.

Initially, I believed that the worsening monetary crisis was due to a lack of confidence in the rupiah, and the ability of the government to cope with the situation. It is understandable that the market becomes nervous in the face of political uncertainty concerning the national leadership succession.

On one particular day in late January, the rupiah fell from a morning exchange rate of Rp 13,500 to the dollar down to Rp 16,000 to the dollar later in the day. This must surely be the work of greedy speculators.

With violent fluctuation in the exchange rate for rupiah to the dollar it is very difficult for companies to plan operation or production strategies. Subsequently, companies in many different industries are threatened with closure.

Unfortunately, the speculators are all invisible. How can we fight an invisible enemy? But I believe in the strength of a concerted effort to fight these beastly humans.

H.W. PIENANDORO

Bogor, West Java