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Private sector increases hedging on own iniative: BI
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A woman walks past Bank Indonesia (BI). (Kontan/Muradi)
B
ank Indonesia (BI) revealed on Tuesday that many companies hedged their funds, despite not being obliged to, thereby increasing the country's total hedging value to US$6.61 billion, a 49.89 percent increase from last year's value.
BI obliges companies to record foreign currency net assets and foreign currency net liabilities of more than $100,000.
Companies reported two different tenors of hedging, 0-3 months and 3-6 months. In the 0-3 month tenor, only 436 companies of 2,372 are obliged to hedge and they already accounted for $3.1 billion in hedging value during the first quarter of this year.
"The remaining 1,936 companies are not obliged to do so, but some have anyway, and their total hedging value is $2 billion," BI statistics bureau director Hendy Sulistiowati said at the BI office on Tuesday.
In the 3-6 month tenor, 229 out of 2,372 companies are obliged to hedge and they make up $700 million in total hedging value. Some of the remaining 2,143 non-obligatory firms accounted for $800 million in total hedging value.
"The 0-3 month tenor hedging value has increased almost twofold while the 3-6 months tenor has stayed relatively stable. Companies recently made accounts payable in the shorter term," she said.
Compared with the first quarter of 2015, total hedging value increased 49.89 percent to $6.61 billion. It increased by 73.88 percent in the 0-3 month hedging, while the 3-6 month hedging increased by only 3.33 percent. (evi)
