These are Two Cheap Hadging Products

By : Wiyanto Dan Aldo Bella Putra | Monday, August 21 2017 - 20:05 IWST

51
51

INDUSTRY.co.id - Jakarta-Bank Indonesia (BI) prepares two hadging instruments for State-Owned Enterprises (SOEs) that are cheaper. Both are call Spread Options and Interes Rate Swaps. This time a new call spread option signed by SOEs with his party.

Deputy Governor of BI Perry Warjiyo said, this hadging still put forward the governance of the directors of state-owned and non-state enterprises. Origin is in accordance with standard operational procedures remain safe for the company.

"Therefore, there are two products that are prepared by SOP, so that the state-owned companies can have the procedure along the lines of course is still in line with the governance, depending on the company, which is obviously a lot of hedging variation," he said in Jakarta on Monday (21/08/2017) .

Perry said that for both hedging products, other names for hadhing cost less than 5%, whereas the average cost of hadhing from forwad and swap products is 5%.

The importance is hadging for SOEs and others to protect the value of corporate debt against the shock of the rupiah against the dollar. To buy a hadging product does not have to be in an unstable economy.

It's good that it is implemented for risk mitigas.

Based on data from the first quarter of 2017, Perry continued, from 2660 companies reporting hadging transactions within three months as much as 88%. Even for hadging period of 6 months approached 90% company.

"Hence, the volume of forex market per day is now US $ 6 billion from the previous US $ 1 billion even just below that, while the volume of foreign currency is 60% derived from derivatives, so hadging has been done and offered before," he explained.

News Comment

Today's Industry

Presiden Jokowi

Selasa, 23 April 2024 - 10:29 WIB

President Jokowi Reaffirms Commitment to Farmers’ Welfare

President Joko “Jokowi” Widodo on Monday (04/22) inspected corn harvest in Boalemo regency, Gorontalo province. “Our corn import has decreased significantly from 3.5 million tonnes to…

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Rabu, 21 Februari 2024 - 08:23 WIB

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Chairman of PT Jababeka Tbk (KIJA), Setyono Djuandi Darmono met the Minister of Youth and Sports of the Republic of Indonesia (Menpora RI) Dito Ariotedjo at the Kemenpora RI Office, Senayan,…