RUPIAH REMAINS STABLE AS INVESTORS STILL CAUTIOUS

Jakarta, March 5 (ANTARA) - The rupiah remained stable in the Jakarta interbank spot market here on Friday morning as investors were still cautious following the President's response to the House plenary's decision on the Bank Century bailout case.

The Indonesian currency traded Rp9,260-Rp9,270 per US dollar, the same rate as a day earlier.

Investors were still worried over the domestic political situation so they refrained from entering the market, according to Kostaman Thayib, retail banking director of PT Bank Mega Tbk.

"The market is still waiting for further developments of the House's plenary session decision on the Bank Century bailout case," he said.

However, he believed that the rupiah still has positive prospects which were boosted also by Wall Street gains following a report of an unemployment rate cut in the US.

But, it would be hard for the rupiah to move further upward because of the sluggish market activity, he said.

He said the rupiah's position at the level of Rp9,250 per US dollar was still sound.

President Susilo Bambang Yudhoyono called Thursday evening for a thorough probe into the Bank Century bailout case to find indications of irregularities and crimes committed by certain parties.

It was likely those committing the irregularities and crimes had so far been hiding behind the case, he said in responding to the results of the House plenary session on the Bank Century bailout case.

The majority of House of Representatives (DPR) members in a vote at a House plenary session on Wednesday night came to the conclusion that violations of state regulations were committed in the Bank Century bailout.

Of the 537 members attending the House plenary session, 325 voted for "Option C" (a statement ridiculing the bailout) and the other 212 for "Option A" (a statement justifying the bailout).