TEMPO.CO, Jakarta – Bank Indonesia Governor Agus Martowardojo said all banks, both domestic and foreign, were set to serve hedging transactions.
“State-owned banks are also ready [to serve hedging transactions], but they expressed hesitation due to different interpretations on state losses,” Agus said on Wednesday, September 17, 2014.
However, Agus said, state-owned banks should no longer worry that they would cause state losses because hedging transaction references had been agreed upon. The difference of foreign exchange incurred by hedging transactions will be considered as cost, instead of loss, or revenue, instead of profit.
In the agreed references, Agus said that hedging transactors were required to implement prudent banking principles and must remain accountable to avoid “moral hazard”. The principles are necessary because the rupiah is still exposed to external risks, such as the U.S. monetary policy normalization and geopolitical situation in Ukraine.
Earlier today, the Supreme Audit Agency (BPK), the Supreme Court (MA) and the National Police have agreed on the reference of Standard Operational Procedure for Hedging Transactions.
TRI ARTINING PUTRI