US$600,000 sold in `Love Rupiah' drive

US$600,000 sold in `Love Rupiah' drive

JAKARTA (JP): Politicians, tycoons, religious leaders and
senior government officials sold American dollars yesterday as
they joined in the "Love Rupiah" campaign aimed at restoring
people's confidence in the national currency.

More than US$600,000 were exchanged for rupiah in drives held
separately at Bank Indonesia (central bank) and the House of
Representatives.

The campaign, however, has received a cool response in the
market. Most money changers in Jakarta reported that there were
more buyers than sellers of the American greenback yesterday.

The rupiah also weakened during the day, closing at Rp
8,600/8,800 to the dollar compared to Friday's closing of Rp
7,800/8,300.

On Sunday, popular Moslem preacher Zainuddin M. Z. launched
the "Love Indonesia" moral campaign, by donating 100 grams of
gold and appealed to others, particularly businesspeople, to do
the same "for their love of the country".

The "Love Rupiah" campaign was sparked by Siti Hardiyanti
Rukmana, a businesswoman and eldest daughter of President
Soeharto, who exchanged $50,000 for rupiah Friday and then called
on fellow compatriots to join in the endeavor.

The Indonesian Editors Group, comprising senior journalists,
formally launched the campaign yesterday at Bank Indonesia's
office on Jl. Thamrin.

"I'm very touched. I hope others will follow. They can sell
whatever amount of dollars they have," host Bank Indonesia
governor J. Soedradjad Djiwandono said.

"We must love and appreciate our own currency," Minister of
Finance Mar'ie Muhammad, who witnessed the ceremony, said.

He specifically called on exporters to unload their dollars.

"We're all in the same boat. If its smooth sailing, we'll be
happy together. But if the sailing is rough, we're all in
trouble."

The state-owned Bank Bumi Daya opened a counter at the event
yesterday to buy up the dollars at an exchange rate of Rp 6,950
to the dollar, well below the market rate.

Leading the pack were Aburizal Bakrie, the chairman of the
Indonesian Chamber of Commerce and CEO of the Bakrie Group, and
The Nin King of the Agro Pantes group. They each changed
$100,000.

Hotelier Sukamdani Sahid Gitosardjono changed $50,100 and then
pledged to donate 1 kg in gold to Zainuddin's cause.

The Nin King said: "I don't know anything about economics. But
I think we must support this kind of drive."

His group, which exports $300 million worth of textiles and
auto components each year, always converted its earnings into
rupiah, he said.

Mar'ie also sold $1,000 and Director General of Taxation Fuad
Bawazier changed $500. But it was not immediately clear whether
Soedradjad, who controls the country's $20 billion foreign
exchange reserves, also sold his personal dollar holdings.

Others who joined the campaign included businessman Iman
Taufik ($100,000), Moslem scholar Ali Yafie ($200), businessman
Amiruddin Saud ($4,000), lawyer Amir Syamsuddin ($50,000) and
Bambang Rachmadi, the owner of the McDonald outlets in Indonesia
($10,000).

Since the drive is tied to the "Love Indonesian Products" and
"Save and Lead a Simple Life" campaigns, some of them did not
collect their rupiah, but put the money in their savings
accounts.

Uni Z. Lubis of the Indonesian Editors Group, said the
campaign would continue at the BDN building on Jl. Thamrin on
Wednesday, Bank Ekspor Impor Indonesia on Jl. Gatot Subroto on
Thursday and Bank Rakyat Indonesia on Jl. Jend. Sudirman on
Friday.

At the House of Representatives, members of the People's
Consultative Assembly changed some $10,000 at a bank branch
office as they joined in the campaign.

Hartono, an assembly member and minister of information, sold
$1,210, and said: "Don't look at the amount. This is a
spontaneous move to inspire others to follow suit and turn this
into a national movement."

The other Assembly members joining in the campaign included
Maj. Gen. Susilo Bambang Yudhoyono, assistant to the chief of the
Armed Forces department of sociopolitical affairs ($1,300), and
Eddy Waluyo, chief of the Jakarta Legislative Council ($1,200).
Golkar secretary-general Ary Mardjono changed $2,000 and Bali
governor Ida Bagus Oka sold $1,750.

Indra Rukmana, husband of Hardiyanti, and other top executives
of the Citra Group also changed dollars at the BDN bank branch on
Jl. Kebon Jeruk.

Indra, chairman of the group, sold $50,000, but then
criticized that the low exchange rate offered by banks could
discourage more people from letting go of their dollars.

"The spread between the buying and selling rate is too wide,
reaching Rp 3,000 to Rp 4,000," he said. (jun/rid/amd/gis/edt)

Editorial -- Page 4