understanding the rupiah, $US and $Aud.


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Posted by bloodyron on Saturday, 3. March 2007 at 09:49 Bali Time:

Recently there has been a bit of discussion about hotels raising their room prices in $US.
If I can use The Flavel Foundation as an example, have a look at these numbers. If 5-6 years ago an Australian promised Helen a donation of $10US per month it would have worked like this;
The Oz dollar was below 50cents US and the rupiah was at 11,000 to the $US.

$10 US = $21 Aud and 110,000 rupiah.

The Oz dollar is now very close to 80 cents to the $US. The $US now gets 9,000rp. So the same equation would be;

$10 US = $12.80 Aud and 90,000 rupiah.

On paper the donation is the same amount ($10US) but in reality it is less and The Foundation would have less money to distribute.

So if a hotel was charging $10 US per night(110,00rp), they would now have to raise their price by 20% just to keep even. eg $10US plus 20%= $12 US which is 108,000 rp.
I could go on further and explain how something that costs 28,000 rp is now cheaper than when it cost 25,000rp a few years ago, however I believe by now everyone would have got bored and stopped reading this post.
By the posts that I make it must be obvious that beer and mathematics are two of my interests.





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