JAKARTA (Yosefardi) – Bank Indonesia has issued new regulation for hedging transaction in attempts to minimize daily transaction of foreign currencies in spot market which potentially gives a pressure on rupiah.
The regulation (PBI number 15/8/PBI/2013) was issued and effective on October 7, 2013, to help companies including state companies for minimizing currency risk.
Difi A. Johansyah, BI spokesperson, noted that domestic currency market is still on development phase with the demand side is higher than the offer side.
Transaction through spot market still dominates, covering 75% of market share. Transaction by swap instruments covers 21% of market share. The other instruments used for hedging transaction are through forward and option markets.