KADIN ASKS GOVT TO GUARANTEE EXPORTERS` FOREIGN CURRENCIES AT BANKS

Jakarta, Oct 26 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) has asked the government to provide a guarantee for exporters' foreign currencies, particularly the US dollar, at the national banks in the country.

"Exporters must be assured that their foreign currencies will be safe if they keep them at national banks. Therefore, the government must assure that our banking system is securer than those of other countries," Kadin chairman for fiscal and monetary affairs, Bambang Soesatyo said here on Sunday.

Soesatyo said that exporters had expressed concern to see the weakening position of the rupiah over the past week, which happened to drop to Rp10,000 against the US dollar.

In a condition where the rupiah was unstable, exporters and foreign exchange depositors will always try to find a safe place to keep their money.

"The government has called on state-owned enterprises (SoE) to transfer their foreign currency accounts overseas to domestic banks. This step should also have prompted exporters and private businesses to follow the SoE steps. But the rupiah exchange rate of late seems to be weakening," he added.

The weakening of the rupiah, according to Bank Indonesia (BI) Governor Boediono, was caused by the withdrawal of the US dollar and taken back to the United States.

"But BI continues to monitor the market fluctuations. We will continue to maintain the stability of the rupiah," Boediono said.