TEMPO.CO, Jakarta-Bank Indonesia (BI) is disseminating the use of sharia hedging facility to financial service businesses like banks and Hajj travel agencies, as well as relevant government agencies like the Financial Services Authority (OJK), the Religious Affairs Ministry, The National Sharia Board (DSN), and the Indonesia Ulema Council (MUI).
BI deputy governor Hendar said that sharia hedging transactions must be cased on two principles. "The transactions must not be preceded by a forward agreement of a series of forward agreements," he said in Jakarta Friday, June 17.
In addition, the underlying transactions for sharia hedging must adhere to sharia principles and supported by required paperwork.
The central banks released the Bank Indonesia Regulation (PBI) No.18/2/PBI/2016 on Sharia Hedging Transactions based on Sharia Principles in February. The dissemination is being held ahead of the rule's implementation.
VINDRY FLORENTIN