Prices of cocoa, coffee and palm olein, sold in US dollar in the international markets, have fallen as the rupiah rises after Moslem leader Abdurrahman Wahid and populist leader Megawati Sukarnoputri were elected president and vice-president respectively last week.

But the rubber market, long neglected by buyers, who used to believe supply was abundant in the world's second largest producer, sees prices rising sharply on strong consumer demand.

``Tight supply is everywhere in the region that's why buyers are rushing to the market now before prices are getting higher. We know that Bridgestone Corp, for instance, is in need of rubber,'' said one trader in Padang, West Sumatra.

``There is more demand than supply in the market these days. We think the trend will remain bullish into the new year. You can't expect prices to rise in the coffee and cocoa market because supply is not tight for those commodities,'' he added.

Tight supply boosted prices of December tyre-grade Sir 20 us cents/lb to 35.00 US cents/lb in Medan, Palembang, Surabaya and Padang week compared with 30.00 last week, said traders.

Cocoa, coffee and crude palm oil traders say they will have to stop referring to the rupiah movements when determining prices because the currency is likely to stay at the 6,700 level against the US dollar for the rest of the year.

Instead, they will refer again to the international markets such as New York's Coffee, Sugar and Cocoa Exchange (CSCE) and Kuala Lumpur Commodity Exchange (KLCE).

Indonesia is the world's second largest crude palm oil producer and the third largest for coffee and cocoa. It is also a leading tin, coconut oil, pepper, tea and copper concentrate producer.

``We can forget about the rupiah from now on. We simply return to the market in London to determine the local prices, just like before the economic crisis started,'' said one trader in Bandar Lampung on Sumatra, referring to the International Financial Futures and Options Exchange (LIFFE).

Traders said prices of grade four robusta beans fell to 6,250/6,500 rupiah/kg compared with 7,250/7,500 last week. The rupiah was quoted at 6,680/6,730 against the dollar at 0546 GMT.

The government named the new cabinet on Tuesday, announcing a line-up full of new faces and short on government experience, which is expected to bring stability in the crisis-racked country.

Economist Kwik Kian Gie, a close aide of Megawati, was named top economics minister as widely predicted.

General Wiranto was pushed aside as both defence minister and armed forces chief, and given the less powerful job of security and political coordinating minister.

Indonesia's worst economic crisis in decades has boosted prices of commodities, improving farmers' revenues. But it has also sparked problems such as unemployment, crimes and unrest.

``I don't mind olein prices have fallen because of a strong rupiah as long as the country is stable. It's true that our revenues from exports have dropped because of gains in rupiah,'' said one trader in Medan, North Sumatra.

Refined, bleached, deodorised (RBD) palm olein, used as cooking oil, fell to 2,750 rupiah/kg in Jakarta against 3,100 rupiah/kg last week.