SOEs signed hedging facilities $1.92b to avoid FX loses

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Photo by The Insider Stories

JAKARTA (TheInsiderStories) – Three state-owned (SOE) banks and eight SOEs signed hedging facilities with worth $1.92 billion on May 25 to avoid foreign exchange (FX) losses in their businesses. The signing ceremony between the SOEs, witnesses by Governor of Bank Indonesia (BI) Agus Martowardojo and Minister of SOEs Rini Soemarno.

In the facilities, portion of PT Bank Rakyat Indonesia Tbk (IDX: BBRI) $750 million, PT Bank Negara Indonesia Tbk (IDX: BBNI) $619 million and PT Bank Mandiri Tbk (IDX: BMRI) $555 million.

The eight companies has gets the hedging facilities are PT Aneka Tambang Tbk (IDX: ANTM), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Pupuk Indonesia, PT Pelabuhan Indonesia (Pelindo) II, PT Pelindo III, PT Semen Baturaja Tbk (IDX: SMBR) and Perum Badan Urusan Logistik.

“Hedging facility providing certainty calculation of cash flow and could calculate our profit management and can avoid the risk of default,” said Agus at the signing of hedging facilities with eight SOEs and three SOEs bank.

He added, if all the stakeholders commit to reform their policies Indonesian gross domestic products (GDP) could reached $4,000 trillion by 2030 from now around $1 trillion. Meanwhile, Rini hope the SOEs manage their management risk to avoid the FX losses at their business and make their bisoness going healthy.

In this month, BI together with Financial Service Agency (OJK) and Finance Ministry expoler various instrument to develop money market more attractive. The three parties explore to develop derivative transaction like promissory notes, reverse repo transaction and sharia product.

“With this agreement wi hope the financial markets more deeper, more investors to come, more instruments, to produce and could be harmonize the regulation, fix the existing infrastructure and which is important educate more wider to the community so that our financial markets more efficient,” He stated.

Muliaman Hadad, the Chairman of OJK added, the agency also explores to create limited mutual funds based on infrastructure projects. While, Finance Minister
Bambang Brodjonegoro adding, government has released regulation to drive the real estate investment funds (REITS) market in the country as part to attract investor invest.

“The point we want to multiply the securities that can be traded, reflecting the structure longer terms, so that all necessary short term to long term could be filled. These products are among us kerjasamakan with BI to create berharaga letter could 1,2,3-year tenors,” Muliaman said.

 

This month, BI together with Financial Service Agency (OJK) and Finance Ministry explore various instrument to develop money market more attractive for the investors. The three parties explore to develop derivative transaction like promissory notes, reverse repo transaction and sharia product.

 

“So the financial markets more deeper, more investors, more instruments, could be harmonization of regulation, fix the existing infrastructure and which is important educate more wider to the community so that our financial markets more efficient,” He stated.

Muliaman Hadad, the Chairman of OJK added, the agency also explores to create limited mutual funds based on infrastructure projects. While, Finance Minister
Bambang Brodjonegoro adding, government has released regulation to drive the real estate investment funds (REITS) market in the country as part to attract investor invest.

“The point we want to multiply the securities that can be traded, reflecting the structure longer terms, so that all necessary short term to long term could be filled. These products are among us kerjasamakan with BI to create berharaga letter could 1,2,3-year tenors,” Muliaman said.

 

 

The post SOEs signed hedging facilities $1.92b to avoid FX loses appeared first on The Insider Stories.

Source: The Insiderstories
SOEs signed hedging facilities .92b to avoid FX loses

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