Tuesday, January 27, 1998
Asian currency depreciation causes problems paying tuition
ECONOMY A three deck, single column subhead goes here; assign
it
By Jonathan Gillespie
Daily Bruin Contributor
With the sharp decline of the rupiah and an international
tuition bill of $4,500 per quarter, Indonesian students must find
some solution to their financial woes.
Despite the urgency of Indonesian students’ financial positions,
the general mood was up and people seemed to be in high spirits at
the Indonesian Bruin Student Association (IBSA) meeting last
Thursday.
One student joked, "Tissue paper is is more expensive than the
rupiah." Cheer and laughter broke out across the room.
In December, the official Indonesian unit of currency, the
rupiah, suffered a sharp decrease in value against the U.S. dollar.
Throughout January it has continued to plummet.
Students with families in Indonesia have been dealt a hard blow
by the currency dilemma and are pursuing two options to eradicate
their financial difficulties: part time employment and taking out
emergency loans.
"[Indonesian] students have a chance to come to UCLA to get an
education," said Nico Wibowo, a vice-president of IBSA.
"The crisis at home cuts these opportunities short. The students
feel they are burdening their parents because the money situation
is five times worse than it ever has been," Wibowo said.
Many students look to the Office of International Students and
Scholars for assistance.
According to Larry Gower, the Director of OISS, there are
emergency, interest-free loans available. In order to qualify for
these loans, one must be in good academic standing, prove
legitimate financial need, and be in a position to repay the
loan.
Jean Hotta, a counselor at OISS, has worked directly with
Indonesians as well as other international students from Asia
regarding their financial hardships. She said she has noticed a
trend of students seeking help since fall quarter.
One common question is on every student’s mind, she said. How
are they going to pay for tuition? Students are encouraged to work
part-time on campus and, if necessary, take emergency loans.
"The loans are a very short-term solution, and must be paid
within the quarter. It is like a band-aid for now," Hotta said.
Several students were seeking part time work, but are restricted
to on-campus jobs because of their immigrant status. In order to
work off-campus, students must apply for a $70 work permit and
demonstrate economic hardship.
At the IBSA meeting, students discussed topics for a petition
aimed at the Director of OISS, asking for cutbacks in tuition, more
loans, and the possibility of assistance with the $70 fee for
off-campus work permits.
There are 84 Indonesian students at UCLA. More than half this
number are foreign students with families in Indonesia and are
affected to a greater extent than non-immigrant students. Overall,
there are 12,461 Indonesian students here in the U.S.
"Indonesian students are really concerned about the political
situation, like who is going to be president. The economic
situation will really determine who will be the next president.
It’s really chaotic down there," said Cindy Tjoe, the president of
IBSA, at the meeting last Thursday.
The rupiah has dropped 69.1 percent since July 1 of last year,
and averages more than 10,000 to one U.S. dollar. The economy has
weakened severely, with the per capita income falling to $340 from
$1130 this last year because of the devalued rupiah.
Before the Asian currency disaster, Indonesia had one of the
fastest growing economies in the world for its size. It is the
world’s fourth largest country in terms of population. Over a
25-year development project, from 1969 to 1994, the economy has
grown at an annual rate of 6.8 percent with the per capita income
rising from $70 U.S. in 1969 to $770 at the end of the project.
The success of Indonesia’s economy has kept President Suharto in
power for the past 32 years. Now, with long food lines and higher
prices, unemployment rising, the rupiah sinking, and banks closing,
Suharto is quickly losing support.
The upcoming elections in March will play a large role in
determining the future of Indonesia’s economy. The people have no
direct part in the elections and are at the mercy of a 1000-person
assembly that will select the future leader of their county.
Two international students have already decided ts decision to
return home from UCLA, and the Office of International Students is
trying to respond.
"The Office is very aware of the situation and is trying to
advocate some way to help students so they don’t have to give up
studies," Hotta said. "It would be a shame for the university, and
their dreams, if they were to go back."