RUPIAH CONTINUES TO GAIN ON FRIDAY AFTERNOON

Jakarta, March 20 (ANTARA) - The rupiah continued to gain and approached Rp11,800 per US dollar in the Jakarta interbank spot market on Friday afternoon with market players purchasing the rupiah following the greenback's weakening in regional markets.
The Indonesian currency traded at Rp11,830/11,850 per US dollar, up 60 points from Rp11,890/11,900 at the market's close a day earlier.
The continued jump of the local currency had been earlier expected as the market's positive sentiment was still high, Kostaman Thayib, banking retail director of PT Bank Mega Tbk., said.
Market players were confident that the capital inflow in the run up to the general elections got bigger so it encouraged them to purchase the local currency and release the US greenback, he said.
A great amount of the general election funds was also seen from a lot of advertisements of political parties, he said. It indicated that local businessmen's funds had been withdrawn from abroad to be spent in the country, he said.
Those businessmen spent their funds to support their favorite political parties, he said.
The local funds influx into the domestic money market boosted the rupiah to strengthen to nearly Rp11,800 per US dollar, he said.
Indonesia will hold a legislative general election on April 9, 2009 and a presidential election on July 8, 2009.