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View all search results90 percent of private companies hedge foreign debt: BI
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Bank Indonesia senior deputy governor Mirza Adityaswara. (JP/Fadli)
W
hile global markets face increasing volatility, Bank Indonesia (BI) said the private sector was resilient as most companies have hedged their foreign currency denominated debt.
"We issued the rule requiring private companies to hedge their foreign currency denominated debt in 2015 and now 90 percent of them have done it," BI senior deputy governor Mirza Adityaswara said in Jakarta on Thursday.
In one week, the rupiah depreciated 1.48 percent against the United States dollar to Rp 13,612 per dollar.
The depreciation was caused by market perceptions on the projected increase of the Federal Reserve key rate, Mirza said.
As the US labor market has shown improvement, market players expect the Fed to increase its reference rate by four times, instead of three times as planned previously.
Mirza believed that the movement would be temporary and other countries would also face currency depreciation. "This is just a market adjustment because of temporary volatility,” he added. (bbn)
