RUPIAH APPROACHES RP12,100 PER US DOLLAR EARLY MONDAY

Jakarta, Feb. 23 (ANTARA) - The rupiah continued to weaken against the US dollar in the Jakarta interbank spot market here early Monday, on high demand for the US greenback.

The Indonesian currency traded at Rp12,095/12,120 per US dollar, down 75 points from Rp11,960/11,975 at the market's close last weekend.
The domestic money market wast still dominated by US dollar purchases as the greenback strengthened in the global market, Kostaman Thayib, retail banking director of PT Bank Mega Tbk., said here on Monday.
"We predict that the rupiah will continue to slide despite a report that the Indonesian government plans to issue bonds in Japan, after a Japanese government guarantee that the bonds would get market response," he said.
However, he said, he believed that Bank Indonesia (BI) would intervene in the domestic market to help lift up the local currency to the level of around Rp12,000 per US dollar.
If fresh funds of Indonesian businessmen overseas could return to Indonesia, the rupiah would surge up to Rp11,000 per US dollar, he said.
He also believed that foreign investors would put their money back in Indonesia if the upcoming general elections could be implemented smoothly and peacefully this year.
Indonesia will have legislative elections on April 9 and presidential elections on July 8, 2009.