Update COVID-19 in Indonesia: 1,298,608 confirmed infections, 35,014 deaths (23 February 2021)
23 February 2021 (closed)
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
Jakarta Composite Index (6,272.81) +17.50 +0.28%
On 12 October 2013 Finance Minister and Central Bank Governors from Korea and Indonesia agreed to establish a bilateral KRW/IDR swap arrangement in the near future. The size of the swap arrangement is up to KRW 10.7 trillion/IDR 115 trillion (equivalent to USD $10 billion). The effective period of the facility will be three years, and could be extended by agreement by both sides. This Bilateral Currency Swap Arrangement (BCSA) aims to promote bilateral trade and further strengthen financial cooperation, an objective of mutual interest to both countries.
The two sides agree that such arrangement will contribute positively to the stabilization of the regional financial market and strengthen bilateral economic and financial cooperation to combat growing uncertainties in the global economy.
Meanwhile, Bank Indonesia issued PBI No.15/8/PBI/2013 to regulate hedging at banks. This new legislation regulates the hedging activity of local residents as well as business entities, excluding banks, incorporated and located in Indonesia, including state-owned enterprises.
The regulation was issued as a form of legal protection for economic players in terms of mitigating market risks amid the gyrations of the domestic foreign exchange market. As one of the efforts to mitigate such risk, economic players can hedge their economic activity using derivatives like forward and swap transactions. Furthermore, hedging is expected to deepen the domestic foreign exchange market.
The regulation also supports the ministerial regulation for state-owned enterprises, Peraturan Menteri Badan Usaha Milik Negara Nomor PER–09/MBU/2013, concerning hedging by state-owned enterprises promulgated on 25 September 2013.
Source: Bank Indonesia