State Banks Give US$2.5bn Hedging Facility to PLN

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  • TEMPO.CO, Jakarta – Three state banks Bank Mandiri, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI), have given US$950 million worth of hedging facilities to state oil company PT Pertamina (Persero).

    Mandiri director for corporate banking Royke Tumilaar said the facility was extended to support Pertamina's activities in meeting the national energy demand.

    The hedging agreement was signed by the banks' officials on Wednesday, May 13, witnessed by representatives of the financial regulators including Bank Indonesia governor Agus Martowardojo, OJK chief Muliaman D. Hadad and Finance Minister Bambang Brodjonegoro.

    "Hedging facilities will give SOEs the power to withstand the rupiah's volatility. It will also reinforce the stability of the rupiah exchange rate," Royke said in a written statement.

    Mandiri's hedging facility to Pertamina is worth US$1 billion. 

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