(22 Jan 1998) English/Nat
Indonesia's currency went into free fall within minutes of the start of trading on Thursday, despite sweeping reforms enacted by President Suharto to arrest the nation's economic crisis.
At one point the hapless currency slumped as low as 14-and-a-half-thousand rupiah to the U-S dollar - a record low.
Money changers and banks were besieged on Thursday morning, with people cashing-in their U-S dollars at a record exchange rate.
Ordinary Indonesians thought it too good an opportunity to miss and flocked to exchange whatever U-S currency they could.
The Indonesian currency has lost about 83 per cent of its value since a currency crisis hit the region in July.
Dealers said the rupiah was sold off in exchange for dollars, which are desperately needed by Indonesian companies to service massive foreign debt loads.
They said U-S investment banks also aggressively bought the dollar following concerns over debt and who might eventually become the successor to President Suharto.
At Citybank in Jakarta, hoards of people lined-up to try and
make large profits from the crisis.
Only at certain banks in Indonesia do people have the opportunity to open U-S dollar accounts, and these are only within reach of the middle class.
Security companies and banks all over the capital have been moving truck loads of cash due to the demand being placed by money changers and the public.
On Wednesday night the men given the task of sorting-out the economy held a press conference to explain to reporters the new reforms Suharto has initiated.
The Economic and Financial Resilience Council issued a statement that their first meeting had reviewed steps required to effectively implement the first stage of the program of economic and financial reform.
SOUNDBITE: (English)
"President Suharto has given directions on how to implement the whole programme."
SUPER CAPTION: Tunky Ariwibowo, Minister of Trade & Industry
The group consisting of the ministers of finance and trade, the central bank governor and Suharto's special economic advisor, warned not to expect all the measures to happen instantly.
Protesters in the capital on Thursday, however, want immediate action.
Many of them say that's the only way the economy can be saved.
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